What's the deal with student loans? How do they work come tax time? Do they count as income?

Question

I have about 20,000 in stufent loans and I'm still in school, just curious how I file that with my taxes.

Answer 1

No, the money you receive from student loans are not considered income. I assume that since you mention that you are still in school, that means that you haven't made any payments on your student loans as yet. If you have made payments and have also been paying interest, you should receive a form from the lender that details the amount of interest you paid during the year. The interest you paid on your student loan would be deductible.

Answer 2

A loan is never considered income unless you don't pay it back.

Once you start paying off the loan, you can deduct the interest as long as the tax law doesn't change.

Answer 3

Quite the opposite, the interest counts as a deduction. No loans to my knowledge count as income simply because you have to pay them back.