Student Loan Interest Deduction


Also found in: Acronyms.

Student Loan Interest Deduction

A reduction in one's taxable income by the amount one spends in interest payments in the process of repaying student loans. For example, if one's student loan payments included $800 in interest for the tax year, one is does not pay taxes on that $800. The student loan interest deduction is subject to certain restrictions, such as a modified adjusted gross income under a certain amount. Additionally, one may only take the deduction if one was legally obligated to pay interest on the loan. The maximum deduction one could take was $2500 in 2008.

Student Loan Interest Deduction

An adjustment to income for interest paid during the year on qualified higher-education loans. The deduction may be limited if income exceeds a specified amount.
References in periodicals archive ?
b) student loan interest deductions for loans contracted by higher education students in order to pay for their studies and which are recorded in their personal income financial statements.
Only the taxpayer legally obligated to make interest payments under the terms of the education loan can claim the student loan interest deduction (Regs.
Further, the 2001 Act increases the income phase-out ranges for eligibility for the Student Loan Interest Deduction to $50,000 to $65;000 for single taxpayers and to $100,000 to $130,000 for married taxpayers filing joint returns.
The third category, post-college deductions, includes th e student loan interest deduction, the work-related education expenses, and the lifetime learning credit.
College students may also reap gains from other provisions in the bill, including one to expand the student loan interest deduction.
Be aware of the student loan interest deduction, part of the tax benefits for higher education.
For example, the Tuition and Fees Deduction cannot be combined with the Lifetime Learning Tax Credit, but the Student Loan Interest Deduction can be used in combination with other education-related benefits.
Coloradans at every income level will receive a tax cut and popular provisions that help hardworking Coloradans like greater tax relief for childcare services, the student loan interest deduction, the medical expense deduction, and tax breaks for teachers are all part of the final bill.
In addition, an enhanced student loan interest deduction starts in 2002, with fewer restrictions.
want to expand the current student loan interest deduction.
Specifically, the House-passed version of the bill would eliminate the student loan interest deduction, which nearly 80,000 Granite Staters took advantage of in 2015.
The student loan interest deduction is allowed for only the first 60 months in which interest payments are required; any loan and refinancings are treated as one loan.
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