How Can Student Loans Help You With Taxes?

February 13, 2012 — Leave a comment

              

For those who have just entered the “real world” or finished their higher education, student loans could create a large financial burden. Fortunately, the IRS has issued a deduction for those who are forced to pay student loans. Up to $2500 can be deducted from a return, however the individual must qualify based on five standards:

1)   Paid interest on a qualified student loan in 2011

2)   Legally obligated to pay interest on a qualified student loan

3)   Filing status is not “married filing separately”

4)   Modified adjusted gross income is less than a specified amount (this is set annually)

5)   If filing jointly, cannot be claimed as dependents on someone else’s tax returns

If more than $600 was paid in interest towards student loans, then the individual must have received a 1098-E student loan interest statement.

The attorneys at J.D.Katz, P.C. have a strong understanding of deductions and credits on your tax returns. Please call us at 301-913-2948 for further information. 

No Comments

Be the first to start the conversation!

Add your $0.02

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s