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Lettuce talk tax deductability of student loans


AWW$HEEET

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What can you deduct from your taxes in terms of student loans?

 

Can you deduct interest? (assuming yes)

Can you deduct principal payments (i.e, paid 400/mo x 12 mos = 4800 deductable)?

Can you do any of this if you are taking standard deduction, i.e. not itemizing.

 

Yes (you should get a tax form from your lender every year)

No (same as with any other loan that you have)

Yes (I have been filing this way for many many years. Standard deduction plus claiming interest paid on my student loans).

 

One other note: You cannot claim the interest on a parent loan.

i.e. I have "Student" loans and "Parent" loans.

I can claim the interest paid on the student loans on my taxes and my parents can claim the interest paid on the parent loans on their taxes (even though I'm making the payment on both loans.

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Yes (you should get a tax form from your lender every year)

No (same as with any other loan that you have)

Yes (I have been filing this way for many many years. Standard deduction plus claiming interest paid on my student loans).

 

One other note: You cannot claim the interest on a parent loan.

i.e. I have "Student" loans and "Parent" loans.

I can claim the interest paid on the student loans on my taxes and my parents can claim the interest paid on the parent loans on their taxes (even though I'm making the payment on both loans.

 

Yeah my parents have a parent loan, i have my own set of loans. I wont be claiming any of their interest.

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i think you were talking about the phaseout, the deduction is reduced if you AGI is between 60k and 75k. For a single person who only take the standard deductions, the phaseout would begin at a minimum of around $69k gross income
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