I have a student loan interested balance of about $1,100 that was accrued over 2005 and 2006. I was wondering if there is a way for me to write out a check for this amount and claim it as a credit this year? Is it too late even though the interest was for 2005/2006 to earn the credit?
2007-01-27 01:45:29 · 2 answers · asked by Della 1 in Business & Finance ➔ Taxes ➔ United States
First of all, yes, it's too late, you'd have had to actually pay it in 2006 to claim on your 2006 return.
And it also depends on how they apply the payment, and how the lender's accounting works, whether the whole payment would be considered interest, or just part of it, with the rest going to principal. The old interest by now might have been added in to the principal amount you owe. If it is, then making a payment would only have interest for the current period, and only a fairly small portion of your check could be claimed.
2007-01-27 04:49:12 · answer #1 · answered by Judy 7 · 0⤊ 0⤋
They should have been sending you a statement every so many months letting you know what the interest was up to and if you wanted to pay it. I just received a notice for mine again and I pay it as soon as it comes, so that way when I finish college and it's time to start paying back the loan I will be paying on just the principle and not paying off the interest too.
I would start paying the interest off now.
2007-01-27 09:54:25 · answer #2 · answered by Anonymous · 0⤊ 0⤋