There are a few education credits you can take, which hopefully you know about if you have the student loan interest. You can’t take more then one credit or deduction for the same expense, no double dipping. So of those credits you can only take one. You aren’t allowed to to take two however you can deducts student loan interest and take an education credit.
Below are a few rules that shouldn’t be broken so rebels, we have to abide by these or
You’re not eligible to deduct student loan interest if you’re claimed as a dependent on somebody else’s TAXES. let’s say, if you claim your kid as a dependent and that they are paying the interest on a qualifying student loan, neither one among you’ll be able to take the deduction.
You can deduct up to $2,500 for interest you paid throughout the year on qualifying student loans, and you do not have to be compelled to itemize IN ORDER FOR this deduction. Qualifying academic loans are often taken on behalf of yourself, your mate, or your dependents. However, you can’t deduct interest on loans you’re not presently paying on – whoever pays the interest gets the deduction.
- The determination of eligibility of an institution is made soley at the time that the loans are taken out – if they subsequently lose eligibility, it doesn’t affect whether you can deduct the loan interest.
- You can very well deduct loan origination fees at the time the loan was actually made, as well as you being able to deduct credit card interest if the credit card is used solely for eligible academic expenses.
- You cannot deduct student loan interest if you or your significant other can be claimed as a dependent on someone else’s return, or if your filing status is married filing separately.
- Your MAGI must be less than $80,000 (single, head of household) or $160,000 (married filing jointly)
- You cannot deduct interest on a loan made to you by a relative or your employer.
- The loan has to have been used to pay for tuition, fees, books, or housing expenses.
- Housing expenses qualify only up to the actual cost of housing and meals at the university, or an amount determined by the educational institution that was included in the federal financial aid determination. (If the student took out extra loans to cover a higher housing expense than what was set as the allowance by the institution, those amounts are not eligible.)
- If you paid more the 600 dollar in interest you will get a 1098E form from the who ever you paid it to a interest statement