2007-01-06 07:51:24 · 4 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
The student loan amount does not affect your taxes except for when you begin repaying, the interest is tax deductible.
2007-01-06 08:00:37 · answer #1 · answered by ME 4 · 1⤊ 0⤋
If your student loan qualifies, you may be able to claim the interest paid as a deduction. Usually the company that issued you the loan will send out an official tax form if it does, in fact, qualify. If not, check your last statement for the year and it may say something along the lines of "keep for income tax purposes". A tax office (or IRS) or your loan lender will be able to give you more information on whether or not your loan qualifies. But, over all, it doesn't really make a huge difference on the amount of your refund.
2007-01-06 16:39:17 · answer #2 · answered by LaLa 6 · 1⤊ 0⤋
bostonian... is almost correct. Student loan interest is not an itemized deduction. It is deducted on line 33 of the 1040 BEFORE AGI. you do not have to itemize to claim it. If you default, the IRS can redirect you refund to pay toward the loan.
2007-01-06 20:48:03 · answer #3 · answered by STEVEN F 7 · 2⤊ 0⤋
It doesn't, unless you default on it. If you default, your tax refunds will be be applied to the outstanding balance.
Interest MIGHT be deductible if you itemize; consult with a tax professional for advice specific to your situation.
2007-01-06 16:13:15 · answer #4 · answered by Bostonian In MO 7 · 1⤊ 1⤋