Is my student loan interest deductible?

Question

student loan interest is taken as an adjustment to taxable income on the first page of 1040....but phased out at higher incomes. Is it then deductible somewhere else, like schedule A?? Or do you have to just eat that interest, the same as credit card interest??

Answer 1

You will pretty much have to eat it. It sucks for me too. Bon appettite!!!

Answer 2

Student loan interest is a tax deduction found in the adjustments to income section of Form 1040 or 1040A. That means you can take this deduction even if you don't itemize, or even in addition to any itemized deductions. You can deduct student loan interest on loans issued for yourself, for your spouse (if you file jointly), and for your dependents. There are income limitations for being able to claim the deduction. Your lender will send you a Form 1098-E. The amount of interest you paid on your student loans for the year will be reported on Form 1098-E, box 1. The maximum amount of student loan interest you can claim is $2,500 per year.

Answer 3

For a very long time education has been an aspired to and sought after achievement by those less fortunate and as we move ahead in the infancy of the twenty-first century, the greater the need becomes for a higher, broader, more innovative and flexible qualification span that satisfies and matches the ever increasing job market demands. Competence rules the day and young people more than ever before, are forced to focus on planning ahead carefully for their academic and income oriented future. To study well and gain a good educational basis is a necessary ingredient in the world today and considered one of the most important decisions of our lives. Indisputably a degree is beneficial to those who understand how to implement it to their advantage and at reasonable cost.

While finding out what line of education to follow, the student is faced with another equally important issue that has to be calculated. Educational tuition does not always come at no financial cost and unless the student has the possibility to pay for tuition via family or job, they may find themselves having to start student life off by borrowing to cover these costs, depending on where the student is geographically located and what line of education they intend to pursue. Read more about it at: http://www.credit-card-gallery.com/article/83,Student_Loans_A_Help_To_Get_The_Education_Necessary_In_The_Demanding_World_Of_Today

Answer 4

Line 33 on form 1040 lists this as a deduction to your Adjusted Gross Income. This needs to be under $2500 and your adjusted gross income needs to be below $50,000.

There are more details at the link below

Answer 5

It would be deductible depending on how much you paid on your student loan that year, and you would have received a form by now from the state agency that handles the loans,for example,I paid 4,300 on my student loans this year and got back a form for the first time stating $955 of the interest is deductible...hope that helps!

Answer 6

Yes, it phases out at certain income limits - these depend on your filing status. If you're above the limit, you can't just take it anywhere else either.

Answer 7

It should be deductible. Your loaner should send you a tax statement at the beginning of the year for the previous year. If you haven't received it you should call them.

Answer 8

Munch, munch....