If both spouses have asked for loans , does it make any difference to make a deduction if one or both are working after they graduate ?
2007-10-01 09:02:09 · 4 answers · asked by Nolita 1 in Business & Finance ➔ Taxes ➔ United States
The student loan interest deduction can be taken in a year you make loan payments which include interest. It can be a year in which you or your spouse are working. It does not have to be a year in which you or your spouse were a student.
The maximum student loan interest deduction per tax return is $2,500. If both you and your spouse have loans, and you can control when you pay, you would want to limit the interest paid to $2,500 per year if possible.
Your deduction is limited if your income is too high. If you file a joint return, you qualify for the full deduction if your adjusted gross income is below $105,000. The deduction phases out completely if your income is $130,000 or more.
There is a worksheet on page 30 of the following publication which will figure your deduction.
http://www.irs.gov/pub/irs-pdf/p970.pdf
2007-10-02 02:17:28 · answer #1 · answered by ninasgramma 7 · 0⤊ 0⤋
You can only take the deduction for student loan interest for the year when it's actually paid. If you don't have income, you wouldn't be paying taxes for that year so there's nothing to deduct it from.
2007-10-01 09:16:32 · answer #2 · answered by Judy 7 · 1⤊ 0⤋
If you are married and filing jointly, as far as I you should both be able to get the combined credit. If you have any doubts, you should contact your local IRS office so that they can give you more information.
2007-10-01 09:07:15 · answer #3 · answered by pitbull1969 5 · 0⤊ 0⤋
no it does not. interest is deducible only in the year its paid.
2007-10-01 09:05:40 · answer #4 · answered by Anonymous · 0⤊ 0⤋