(11) The 1997 Taxpayer Relief Act (12) placed the student loan interest deduction
"above the line." Therefore, even nonitemizers may claim this deduction.
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.
The student loan interest deduction
was scheduled to expire at the end of 2010, but was extended for two years by the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010.
Student loan interest deduction--Line 25: The Student Loan Interest Deduction
continues to increase for military taxpayers.
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
. Currently, ex-students may deduct student loan interest for only five years, and there are strict income requirements.
Be aware of the student loan interest deduction
, part of the tax benefits for higher education.
In calculating the student loan interest deduction
, qualified education expenses must be reduced by, among other things: (5)
Maintain the Above the Line Student Loan Interest Deduction
, on top of income bracket cuts
Student loan interest deduction
. This deduction is phased out if the taxpayer's MAGI is between $110,000 and $140,000 and the taxpayer is filing a joint return ($55,000 and $70,000 for taxpayers filing single).
Student Loan Interest Deduction
. The Act will increase the phase-out for the student loan interest deduction
In addition, an enhanced student loan interest deduction
starts in 2002, with fewer restrictions.