Ok, so I am a graduate student, and for the first time, I am getting student loans, which has pretty much cut down on how much I will pay (i.e. nothing...yet) each semester. Now, I know that at the end of the year, my school will send me a 1099 indicating how much I "paid" to the school. Will that show student loans as an amount I paid, and thus allow me to deduct that money on my 1040?
2007-11-20 05:39:30 · 2 answers · asked by gengidashiell 3 in Business & Finance ➔ Taxes ➔ United States
Yes, tuition and fees paid with a student loan are eligible expenses for an education credit. If you have any tax liability for the year, then it should lower your taxes.
Caution: If your parents can still claim you as a dependent, then THEY, not you, get the education credit for your expenses even if the loans are in your name. But school expenses do count in the calculation of whether or not you paid over half of your own support, which would control whether they could claim you.
2007-11-20 06:56:00 · answer #1 · answered by Judy 7 · 2⤊ 0⤋
Sorry, no deduction for education payments that qualify you for a new trade or profession.
2007-11-20 14:47:48 · answer #2 · answered by Anonymous · 0⤊ 2⤋