Student Loan Interest Deduction

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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.
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The bank also is required to reimburse an estimated 130,000 borrowers up to $300 in tax preparation costs for amending their 2011 and 2012 returns to claim student loan interest deductions.
The survey said to meet the goals of retirement and savings, one can try for grants and low-interest loans through which one can also qualify for tax breaks like the American Opportunity Credit, Lifetime Learning Credit and student loan interest deductions.
In many cases, you can also qualify for tax breaks like the American Opportunity Credit, Lifetime Learning Credit and student loan interest deductions.
The DOR highlights several issues that are complicated by the inconsistent filing status, such is dependency exemptions, deductible care expenses, passive activity losses and student loan interest deductions.
Limits on 401(K) contributions increased to $10,500 for year 2000 (The limit for 1999 was $10,000) - Student loan interest deductions for year 2000 increased to $2,000 (if you are under the income limits) - Maximum earnings subject to Social Security tax increased to $76,200 - Standard deductions increased: 1.
In many cases, you can also qualify for tax breaks like the Hope Scholarship and Lifetime Learning Credit, as well as the college tuition and student loan interest deductions.
Take advantage of tax breaks through the HOPE Scholarship, Lifetime Learning Credit and student loan interest deductions.
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