If I claim the interest that I paid on my student loans last year, will my tax return increase?

Question

I had federal loans and private loans. I consolidated all of them last year. I have the interest on the individual loans as well as the consolidation loans.

Answer 1

If you meet all the qualifications to deduct your student loan, you would be able to take an adjustment to your income, there by lowering your adjusted gross income.
Publication 970 page 25 is where the chapter on Student Loan interest begins. There are income limitations,as well as others that may limit the amount that you can claim.
http://www.irs.gov/pub/irs-pdf/p970.pdf

Answer 2

Good question. I have student loans too that I've been paying interest on over the past year and they are consolidated. I got a letter today telling me how much interest I paid last year and it also tells me where I'm to put it on my tax return form (1098-E).

Answer 3

You can deduct student loan interest off your income as an adjustment to income, on Line 33 of the 1040.

If you had enough income to owe tax, then the student loan interest deduction will decrease the amount of tax owed. You will owe less tax, so that if your withholding is more than tax owed, your refund will be larger than it would have been without the student loan interest deduction.

Answer 4

i'm sorry yet no, this received't income you on your tax go back. inspite of how the money became extremely paid, this IRS considers this a present that you gave on your daughter and she or he then used to repay her pupil loans. that is authentic even if you paid the loan organization quickly. Your daughter, although, can write off any pastime paid (as a lot as $2,500) as an adjustment to income.