This article was last edited on November 7, 2011. For updated information on student loans and taxes, read more here.
With tax season less than 2 months away, it’s time to start thinking about your tax return. For those of you that have graduated or finished your higher education, student loan repayments are now a big part of your life. If you haven’t begun paying on your student loan, this guide will help alleviate some future confusion.
Student loans can save you a lot of money… up to a $2,500 deduction. But there are a few things you must know in order to claim the deduction.
You can claim the deduction if all the following apply:
• You paid interest on a qualified student loan in 2011
• You are legally obligated to pay interest on a qualified student loan
• Your filing status is not married filing separately
• Your modified adjusted gross income is less than a specified amount which is set annually
• You and your spouse if filing jointly cannot be claimed as dependents on someone else’s return
If the above apply to you, you are well on your way to claiming this deduction. If you paid $600 or more of interest on a qualified student loan during the year, you should receive a 1098-E student loan interest statement from the entity you paid.
Now comes the easy part. With TaxSlayer.com all you have to do is enter the amount from the 1098-E into TaxSlayer.com and it will calculate your deduction. TaxSlayer.com simplifies the process. If you still need help, no worries! Check out our help videos that are found in the program once you log in to your account. They are free and certainly will help!