I'm confused about student loans and taxes!!HELP!?
I'm confused about student loans and taxes!!HELP!?
Ok so I have been told that I can have my student loans deducted, and well..I have heard from a tax agent, that this is true, however, he forgot to mention how much I can get written off, and he was also talking about write offs and deductions, can you please elaborate on that, because I'm really confused! HELP!! Thanks!
Answers:
Chosen Answer
fukinluckyfuker: Some student loan interest is tax-deductible. Meaning, for example, let's say you paid $200 per month on your student loans. $2400 for the year. Let's say $2000 of that was interest, $400 actually paid principal. You could potentially lower your taxable income by $2000. Thereby lowering your income tax bill at the end of the year. Student loans come in many forms, some subsidized by the government, some not. Tax deductibility may also be impacted by your annual income, if you make tons of money you may lose your ability to deduct your student loan interest. At the end of the year, and most likely by Jan. 31, you will receive a statement from your student loan lender, I believe it's a 1098 interest-paid form. Just like a W-2, you need to include this with your other paperwork when you go to your accountant and do your taxes. He can't know how much you paid, and how much might be deductible, until he sees all of that information. Ya just gotta be patient, and probably should pay someone to do your taxes, or at least buy a PC program to do them yourself but with the guidance of the software.
2006-12-01 10:43:39
fukinluckyfuker: Some student loan interest is tax-deductible. Meaning, for example, let's say you paid $200 per month on your student loans. $2400 for the year. Let's say $2000 of that was interest, $400 actually paid principal. You could potentially lower your taxable income by $2000. Thereby lowering your income tax bill at the end of the year. Student loans come in many forms, some subsidized by the government, some not. Tax deductibility may also be impacted by your annual income, if you make tons of money you may lose your ability to deduct your student loan interest. At the end of the year, and most likely by Jan. 31, you will receive a statement from your student loan lender, I believe it's a 1098 interest-paid form. Just like a W-2, you need to include this with your other paperwork when you go to your accountant and do your taxes. He can't know how much you paid, and how much might be deductible, until he sees all of that information. Ya just gotta be patient, and probably should pay someone to do your taxes, or at least buy a PC program to do them yourself but with the guidance of the software.
2006-12-01 10:43:39