Student Loan Interest Tax Deduction
Dear American Student Assistance:
Can I deduct my student loans on my taxes?
There are indeed various possible deductions that you may be able to claim on this year’s tax return. Before we get started though, it’s important to remember that the items below may not apply to everyone and you should always seek the advice of a professional prior to claiming these deductions. But here are some things to ask about.
One of the most common deductions is for student loan interest paid during the applicable tax year. If you have a student loan in your name that was taken out for either yourself, your spouse, or a dependant, you may be able to claim up to $2,500 of the interest you paid towards that loan during 2009.
If your adjusted gross income (AGI) is greater than $60,000, your deduction amount will be reduced, and, if it’s $75,000 or more, it will be eliminated altogether. (These amounts changes to $120,000 and $150,000 respectively for a married couple filing a joint return).
There are several other education deductions and credits that may be available to you such as the American Opportunity Tax Credit and the Lifetime Learning Credit. You can find out more information about these and the deductions mentioned above in Publication 970, which can be found on the IRS website.
If you are in school or repaying student loans, there are certain tax advantages you may be eligible for. See what tax deductions might be available to you.