College is expensive, and many students find that they need to take out a loan to pay for their education. The good news is that the IRS allows many taxpayers to deduct student loan interest on their taxes. Here’s what you need to know.
- You do not have to itemize your deductions to take the student loan interest deduction. This deduction is done as an adjustment to income, allowing you to claim this deduction as well as the standard deduction (or itemized deductions, if you would prefer).
- To qualify for the student loan interest deduction, your modified adjusted gross income must be less than $80,000 (or less than $160,000 if filing a joint tax return with your spouse).
- You can deduct the interest on loans for qualified educational expenses, including tuition, room and board, books and materials, and other necessary expenses (such as transportation).
- Qualified student loans include loans you took out to pay for your own, a spouse’s, or a dependent’s qualified educational expenses.
- The student loan interest deduction can reduce your taxable income by up to $2,500.
For additional details on claiming the student loan interest deduction, don’t hesitate to contact Taxation Solutions, Inc. today. Our knowledgeable tax experts can help ensure you’re correctly claiming this deduction. Every little bit counts when it comes to making higher education more affordable: Our team is standing by to help you with the student loan interest deduction to aid you in offsetting some of the expense of college. Call now!