Student loans – a blessing in disguise
There have been countless of instances when student loans helped us get through our difficult times and we have never been thankful enough. Almost very other student nowadays has had some kind of help by getting a student loan and that has aided them immensely in acquiring the degree they have been aspiring for since such a long time. However, with more students getting their hands on student loans, there has to be something done that can make their lives even more easier and what better than getting a Deduction of Interest from Student Loans?
However, always remember that the person who took the loan, using their name, is the one who is qualified to get the deduction. This means that if your parents got the loan for you and you claim for the deduction, it is going to be your parents who will get the deduction money.
Factors that qualify you for a Deduction of Interest from Student Loans
It is not easy for a person to simply stand up and claim for a Deduction of Interest from Student Loans until and unless they have the following factors covered.
- You can get this deduction only if you have taken this loan for the only purpose of assisting yourself in managing expenses related to your education.
- As a part of the federal student loan deduction, a student can claim for a deduction only if their modified adjusted gross income (MAGI) is under $65,000. The value of the deduction is reduced if your MAGI is between $65,000 and $80,000 and you cannot claim for a deduction if it is more than $80,000.
- You also must have paid an interest on the student loan during the tax year.
- If you are married and are applying for the deduction together, both of you will receive a single deduction amount. You cannot file separately whilst being married.
After going through the points that qualify you for a Deduction of Interest from Student Loans, you can get a maximum deduction of $2,500. You can even use a Student loan interest deduction calculator to make things all the more easier for yourself and simply type in the numbers in the required boxes.