Tag Archives for " EDUCATION "

STUDENT LOAN INTEREST

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