You might be paying back loans you took to finance higher education.
You can claim the student loan interest tax deduction as an adjustment to income. Student loan interest is interest you paid during the writing off student loan interest on taxes on a qualified student loan.
A qualified student loan is a loan student loan took out only to pay qualified education expenses that were:. Qualified education interest taxes are the total costs to attend an eligible school.
This includes graduate school. To learn more, see Chapter 4 of Writing off student loan interest on taxes Tax Benefits for Higher Education at www.
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With more than 70 percent of the country's latest degree recipients using student loans to pay for their recently earned degrees, understanding student loans has become more important than ever. But like many of the rules in our complicated tax code, student loan interest does not apply to everyone -- or to every loan. The good news is that you can deduct interest on your student loan even if you don't itemize your deductions.
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Student loan interest is interest you paid during the year on a qualified student loan. It includes both required and voluntarily pre-paid interest payments. The deduction is gradually reduced and eventually eliminated by phaseout when your modified adjusted gross income MAGI amount reaches the annual limit for your filing status.
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