Can I Write Off Student Loans?
Every year a new set of students roll into college and the outcome is usually the same. The students and their parents are up to their ears in student loans and debt. With the economy already in shambles, people are always doing research to see where they can save money and even what they can do about their taxes.
One of the most frequently asked questions, is “Can I Write Off Student Loans”? You can’t exactly deduct student loans, but you can save up a lot if you only write off your student loan interest.
Find: Low Interest Student Credit Cards
If you are a college student with loans, go to your student loan company and ask for the 1098-E form. Your student loan company will give this to you along with your monthly statement. Also ask for a 1040 Schedule A form and file it. If you have an accountant that handles your taxes, give the filled up 1098-E form to him/her.
The maximum amount of interest that can be deducted every year is $2,500. But this is only for unmarried students who only have $55,000 or less annually. For married students who file jointly, they can get deductions if they only get $110,000 every year. If you are single and earn $70,000 or more, or married and earn at least $140,000, you can only get partial deductions. Married students who do not file jointly cannot get deductions.
How To: Lower Student Loan Payments
If you want more information about this, you can read the Publication 970 from the Internal Revenue Services website (http://www.irs.gov/publications/p970/index.html), specifically the fourth item about student loan interest deductions.
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Brandon is an expert in the field of online marketing, product research and freelance writing. With over seven years of writing experience, you can also view guest articles of Brandon’s at BlogReign.com.
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