Does anyone know if I could use this as a tax credit? It would be nice to get some of the interest I paid back. My 2006 adjusted gross income was $28,000.00. I paid nearly a $1000.00 in federal taxes.
2007-01-02 08:33:02 · 6 answers · asked by autustle 2 in Business & Finance ➔ Taxes ➔ United States
Wow- what college? Thats spelled 'paid'. Anyway, I digress. Interest on student loans is almost always deductible, unless your income is too high. No tax credits are available though for student loan interest.
2007-01-02 08:40:48 · answer #1 · answered by bmwdriver11 7 · 1⤊ 0⤋
Yes, there's a student loan interest deduction. You have to file a 1040, not 1040A or EZ, but you don't have to itemize to take it. It goes on the bottom of the front page of the 1040 as an adjustment.
There are income limits on eligibility for this, but at $28,000 you eligible. There is also an upper limit on the amount that can be deducted, but it's higher than the $1500 you paid.
2007-01-02 15:26:40 · answer #2 · answered by Judy 7 · 0⤊ 0⤋
The place where you have your student loans through will send you a form stating the interest you paid to them and you will be able to deduct a preset amount on your taxes. I believe the amount is $1200 but it may have changed.
2007-01-02 08:42:47 · answer #3 · answered by country girl 5 · 0⤊ 0⤋
You will receive a 1098 form showing the interest paid which can be deducted from gross income on your 1040 even if you do not itemize deductions.
2007-01-02 08:38:10 · answer #4 · answered by spicertax 5 · 1⤊ 0⤋
I'm not sure about the tax credit. Do you have a good interest rate? You might consider consolidating your student loan(s) to get a better interest rate.
2007-01-02 08:37:06 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Yes, you may qualify for the student loan interest deduction (it is not a credit). See the link below for more information.
2007-01-02 09:41:24 · answer #6 · answered by Mr. Zimmer 3 · 1⤊ 0⤋