calgrant will stop helping me at UCDAvis should i take out a loan or have parents help with tuitilon?
how does loan payment and interest can it be deduced in any way to help with IRS?
2006-11-19 05:29:13 · 4 answers · asked by N M 1 in Business & Finance ➔ Taxes ➔ United States
If the loan is for your education, and your parents take the loan out to pay for your education, and your parents are responsible for paying the loan back, then they can claim up to $2,500 per year of interest on the loan (assuming they pay it) as a deduction on the front page of their 1040. Now, there are a few exceptions, as there always are with taxes. Your parents can't file as Married Filing Separately. If they file as Married Filing Jointly, they can't claim the entire $2,500 if their adjusted gross income (AGI - bottom number on the front page of their 1040) is above $105,000, and they can't claim any of it if their AGI is above $135,000. If your parent files as single, then the $105,000 becomes $50,000 and the $135,000 becomes $65,000.
2006-11-19 11:27:54 · answer #1 · answered by TaxMan 5 · 0⤊ 0⤋
1
2016-10-24 04:00:05 · answer #2 · answered by Miriam 3 · 0⤊ 0⤋
No offense, but maybe you should not borrow money to attend college. You may not be college material. The grammar, spelling, and punctuation in your question appears to be at a third grade level at best. Hopefully, you wrote it in haste and were not thinking properly. If you plan on making the best use of your college years, I suggest you start writing like a college student on all correspondence.
2006-11-20 09:52:16 · answer #3 · answered by CA_hiker 2 · 0⤊ 0⤋
depends on earning of who pays back
2006-11-19 05:35:20 · answer #4 · answered by Anonymous · 0⤊ 0⤋