can I file that when it comes to doing taxes? If so how? I'm planning on doing my own taxes..
2006-12-20 07:11:07 · 6 answers · asked by im_a_goofy_chick 2 in Education & Reference ➔ Financial Aid
Only the interest paid on student loans is tax deductible. Your lender will send you a form 1098E which will show how much total interest you paid in 2006.
2006-12-20 07:13:40 · answer #1 · answered by Dana B 2 · 2⤊ 0⤋
The interest you pay on your loans is deductible. You will not be able to use the 1040EZ form though. You'll have to use 1040A or 1040. The instructions are pretty straightforward. The loan servicer will send you a form (1098) that tells you exactly WHAT to write and exactly WHERE to write it on your income tax forms. I believe the interest is deductible at the state level, also.
2006-12-20 07:43:16 · answer #2 · answered by Annette T 3 · 0⤊ 0⤋
Yes. You'll be able to file the amount of interest you've paid on it I believe.
The bank/institution you're paying back will send you a form in January telling you how much interest you paid back for the year. Like how you get W2 forms, you'll get one for your loan.
When filling out your tax form, there should be a place on the form where you can tell unmistakeably that's where you put in your college loan interest information.
Hope that helped ya.
2006-12-20 07:21:16 · answer #3 · answered by mycountryfamily 4 · 0⤊ 0⤋
You get to deduct the interest only. You'll get a form from whoever loaned you the money.
2006-12-20 10:26:06 · answer #4 · answered by Jimbo 4 · 0⤊ 0⤋
Sallie Mae has good information on the tax implications for student loans. http://www.salliemae.com/before_college/parents_plan/ways_to_pay/tax_incentives/tax_incentives.htm
2006-12-21 01:04:32 · answer #5 · answered by Anonymous · 0⤊ 0⤋
I think you can claim the interest on the loan, but not the principal.
2006-12-20 07:18:21 · answer #6 · answered by Anonymous · 0⤊ 0⤋