Remember, with TurboTax , we'll ask you simple questions about your life and help you fill out all the right tax forms. Whether you have a simple or complex tax situation, we've got you covered. Feel confident doing your own taxes.
Just answer simple questions about your life, and TurboTax Free Edition will take care of the rest. For Simple Tax Returns Only. What is a E: Student Loan Interest. About Student Loan Tax Credits. Tax Tips for Students. The Lowdown on Education Tax Breaks. Estimate your tax refund and where you stand Get started. See if you qualify for a third stimulus check and how much you can expect Get started.
Easily calculate your tax rate to make smart financial decisions Get started. The student loan interest deduction is not an itemized deduction — it's taken above-the-line. That means it's subtracted from your taxable income to save you money.
If you qualify, you can take both the student loan interest deduction and the standard deduction. You used the loan for qualified education expenses. These include tuition, room and board, books and other necessary expenses, such as transportation. You took out the loan for your own education. You took out the loan for someone else's education. If you took out a loan in your own name for someone else — like a parent PLUS loan for your child, for example — you can take the student loan interest deduction.
You were forced to repay the loan. Even if your wages are being garnished or you're otherwise legally obligated to repay a loan, you can still deduct any interest you've paid off. You can't claim the student loan interest deduction if your filing status is married filing separately.
To claim the student loan deduction, you or your spouse must be legally responsible for paying the loan. Your children cannot claim the deduction either if they are listed as dependents on your tax return.
Interest on credit cards and other revolving lines of credit may qualify for the student loan interest deduction, as long as the line of credit was used only to pay for qualified education expenses. If the new loan exceeds the amount of the original loan, and you use the additional proceeds for anything other than qualified education expenses, none the interest on the refinanced loan is deductible. Private student loans qualify for the student loan interest deduction as long as they were used to pay for qualified educational expenses at an eligible school approved to participate in a student aid program administered by the U.
These requirements vary from year to year, but for the tax year you were required to file a return if your gross income was at least:. You may qualify for a refund of any federal income tax withheld and for tax credits like the American Opportunity Credit.
Your parents, guardians, or other relatives who have stepped into that role, may list you as a dependent on their tax return if:.
Each state has its own rules, but your tax preparation software or a tax professional can help you sort them out. If you or any of your dependents are still in school, there are two tax credits that can help you offset the costs of higher education by reducing the amount of income tax you owe:. You can also use a scholarship to pay for course-related expenses like books and supplies without triggering a tax obligation.
Department of Education. Students at educational institutions that are not public universities and colleges may be eligible for federal student loan programming. These institutions include technical and vocational schools, for-profit and nonprofit colleges, and other postsecondary institutions. The student loan must be made by you and not from an employer benefits package or relative, and as the borrower, you must pay back the loan in a realistic time frame.
However, the IRS is flexible if you are making an effort to pay it back and communicative about your financial situation. If you qualify, take advantage of the student loan interest deduction.
How We Make Money. Written by Kathryn Pomroy. Written by. Kathryn Pomroy. Edited By Lance Davis. Edited by. Lance Davis. Lance Davis is the senior editorial director for Bankrate.
Lance leads a team responsible for creating educational content that guides people through the pivotal steps in their ….
0コメント