Thursday, January 10, 2008

Deducting Student Loan Interest

Attention College Students,

"You can deduct up to $2,500 in student-loan interest paid in 2007 if your income for the year was $55,000 or less if single, or $110,000 or less if married filing jointly," Kiplinger reports. "Single people can take a partial deduction if they earned up to $70,000 for the year, or $140,000 if married filing jointly. You can take the deduction regardless of whether you itemize. You may even qualify to take the write-off yourself if your parents paid the interest on a loan for which you were legally liable (your parents, however, cannot claim the deduction if they weren't liable for the loan). You cannot deduct student-loan interest if you are being claimed as a dependent on your parents' tax return."

You can read the complete January 7, 2008
Kiplinger article on-line to learn more.