Stafford Loans and Taxes!?

Question

Are stafford loans (or direct loans) from US government be used as a tax-deductible interest when filing for taxes?

Thanks!

what's the max. deductable?

Answer 1

Yes. There are certain criteria to meet:

Criteria for Stafford Loan tax benefit:
The person must have been enrolled at least half-time in a degree program for whom the expenses were incurred.

Interest would need to paid on a qualified education loan for you, your spouse, or a dependent at the time of borrowing of the loan.

You should not have been claimed as an exemption on anyone else's tax return.

Double-dip is not permissible. This would mean that if the interest is deductible somewhere else on the return, such as home mortgage interest, you cannot include the deduction as student loan interest also.

Some education expenses which are eligible include tuition, fees, room and board, books, supplies, and equipment, transportation costs, and other essential expenses included in the school's student budget.

You cannot avail of the deduction when you've paid for the expenses by using specific tax-free education benefits. These include employer education assistance, tax-free withdrawals from a Coverdell Education Savings Account, US savings bond interest, veterans educational assistance benefits, and certain scholarships

The max is $2,500.00

Answer 2

Absolutely, they'll send you or you can download a copy of the IRS form that shows your paid interest. I normally get mine sometime in January and it's totally tax deductible, just like non government loans.

Answer 3

Yes....assuming that you are under the income requirements.