Someone told me student loan interest is only tax-deductable if you make under a certain ammt. of money and that its only deductable for the first few years after you graduate. Can someone who KNOWS the tax law please tell me what the rules are for this deduction? I don't want to take it if I am not eligible then get in trouble with the IRS. Thanks!
2007-07-27 13:27:43 · 2 answers · asked by Esmeralda 4 in Business & Finance ➔ Taxes ➔ United States
You are correct that student loan interest is only deductible if you make under a certain amount of money. If you're married filing jointly, your joint AGI must be below $135,000; otherwise your AGI must be below $65,000.
There isn't a time limit though - as long as you meet the eligibility rules, you can deduct it as long as you are still paying interest.
2007-07-27 14:26:33 · answer #1 · answered by Judy 7 · 1⤊ 0⤋
It's a practice all over the world, student loans interest are tax deducted. It also vary from a country to another. In Denmark, and the Scandinavian Countries, the monthly installments are also tax deductible. That to encourage the people to utilize & facilitate the banking facilities.
2007-07-27 16:46:50 · answer #2 · answered by profissor Bogy B 2 · 0⤊ 0⤋
Judy is correct, the only thing I have to add is, if you are doing your own taxes--consider purchasing a good tax program. The program will guide you so that you do not take more deduction than you are allowed. Just be careful to follow instructions to the letter. I have make a good living on people who have used tax programs and messed up there taxes.
I wish you the best.
2007-07-27 16:42:39 · answer #3 · answered by oldcorps1947 6 · 0⤊ 0⤋
Apply now for your business and christmas loan.
financeericson@gmail.com
finance.ericson@hotmail.com
2014-12-04 20:48:41 · answer #4 · answered by Anonymous · 0⤊ 0⤋