And if so how? Also can be written as a credit? or what was that other word? Need some info on taxes and student loans please. Thanks-to all who respond.
2007-01-25 09:13:55 · 9 answers · asked by UR funee but looks arent evrythg 4 in Business & Finance ➔ Taxes ➔ United States
You will be able to adjust your income downward (a deduction) by applying the interest paid on the student loan in the 2006 tax year. This will give you a lower Adjsuted Gross Income (AGI) and this is what your tax basis is based on.
You will receive a 1099 with the interest information on it in the mail by the end of January/beginning of February.
If you're within the second year of your post-secondary education, and you're paying your way through school, you will also want to look at the Hope Credit. If you're third year or above, you possibly will qualify for a Lifetime Learning Credit.
A lot of it depends on who is paying for school. I'll try and edit this post tonight when I get home and have access to the books for the 2006 tax season. I'll be able to give you form numbers and line numbers for the 1040.
2007-01-25 09:22:03 · answer #1 · answered by dougzinboston 4 · 0⤊ 0⤋
Student Loan Interest may be deductible as an adjustment to your income. Internal Revenue Service Publication 970 details out how your educational expenses can affect your taxed.
You can find this publication at wwwirs.gov, or call 1800-829-1040
2007-01-25 09:29:10 · answer #2 · answered by Anonymous · 1⤊ 0⤋
Your student loan is reported to the IRS, but it is not income and is not taxable. By the same token, the interest is not deductible. There is a tax credit for tuition costs and you should have recieved or will shortly recieve a statement that shows your actual tuition payments. This is used to determine your tuition tax credit.
2007-01-25 09:21:22 · answer #3 · answered by fangtaiyang 7 · 0⤊ 0⤋
If you are now repaying your student loans you can take a deduction of the interest you have paid. They should send you a 1099 that says the amount that you have paid for 2006. I've been taking it as a deduction for the last couple of years.
2007-01-25 09:28:16 · answer #4 · answered by *Cara* 7 · 0⤊ 0⤋
I don't think your loan will affect your taxes as much as your schooling will. Keep your tuition receipts and they will go a long way in the form of a tax write off. In canada anyway.
2007-01-25 09:20:00 · answer #5 · answered by Feeny 2 · 0⤊ 0⤋
Of course the gov' can take your money if you owe them it, and did not pay it back. That is like stealing money from someone!!!! You should have been notified though. I would go in and talk to them. Perhaps you didn't read the fine print, or they could have misplaced your mail. My brother in law, did not pay his student loan back for a long time, and they now take it out of his work cheques, the bad thing is he is paying intrest up the butt now as oppose he were just to pay it off when his dead line was.
2016-03-29 02:32:43 · answer #6 · answered by Anonymous · 0⤊ 0⤋
If you're paying interest on a student loan, you get a tax break for it.
2007-01-25 16:51:50 · answer #7 · answered by Judy 7 · 0⤊ 0⤋
Yes, depending on how much you make, if your income is low enough, you should be able to deduct the interest you paid on the loans. You can deduct costs for things like textbooks as well.
2007-01-25 09:23:26 · answer #8 · answered by aanusze1 3 · 0⤊ 0⤋
student loans are tax wright offs
speak to a tax adviser i would sugest having someone do your taxes for you
kids loans there are so many deductions
2007-01-26 14:28:54 · answer #9 · answered by mira g 1 · 0⤊ 0⤋