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I have an enormous student loan amount, and my parents said they'd help me pay it off, so I'm wondering if student loans are tax deductable?

2006-11-01 08:30:39 · 7 answers · asked by Om... 3 in Business & Finance Taxes United States

7 answers

The interest is tax-deductible for most taxpayers. The tuition was deductible in the tax year the tuition was paid (or billed to student loans).

2006-11-01 09:26:09 · answer #1 · answered by Dwight D J 5 · 1 0

The loan itself is not a tax deduction. The interest paid on the loan can be taken as a deduction. Every year, the lender will send you a document of all interest paid. You will report the interest paid on your Form 1040- Federal Income Tax Return. There is a line for it. Read the instructions, or buy ultra tax.

2006-11-01 08:41:02 · answer #2 · answered by Anonymous · 0 0

As others have said, interest on student loans is deductible. On the 2005 1040 the deduction is taken on line 33. This is an 'above the line' deduction. That means it is taken before AGI is determined.

2006-11-01 11:26:32 · answer #3 · answered by STEVEN F 7 · 2 0

The loan is not a deduction but the interest is on your 1040 just as a mortgage is

2006-11-01 08:32:59 · answer #4 · answered by golferwhoworks 7 · 0 0

If your parents aren't liable for the loan, then they can't deduct payments that they make if they help you.

2006-11-01 11:35:34 · answer #5 · answered by Judy 7 · 0 0

To previous due for 08; something paid now is going for 09. in basic terms besides besides using fact the little nero's in washington are going to be elevating taxes to fund the fat cat bailouts; and utilising the activity in ninety capacity you minimize your taxable income in 09. you acquire fortunate this time around.

2016-10-21 02:41:38 · answer #6 · answered by hosford 4 · 0 0

I know if you do not pay it they can report it as earnings. Now isn't that a kicker.

2006-11-01 08:38:49 · answer #7 · answered by Valerie 6 · 0 0

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