Student Loan Interest

If you pay interest on a qualifying student loan, you can take the student loan interest deduction. This deduction is an adjustment to your income, so you do not need to itemize your deductions (as long as it doesn’t reach the annual limit of your filing status).

You can claim the deduction if:

• You paid interest on a qualified student loan
• You must pay interest due to legal obligation
• You don’t file as married filing separately
• Your MAGI is less than the annual specified amount
• You cannot be claimed as a dependent

As a reminder, a qualified loan is a loan you take out for higher education purposes. You can take it out for yourself, your spouse, or a dependent on your taxes. You must also pay it within a reasonable time as well be an eligible student.

This entry was posted on Monday, November 16th, 2020 at 3:04 pm and is filed under Deductions. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.