ABCs on student loan interest deductions — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily
  • LinkedIn
  • YouTube
  • Twitter
  • Facebook
  • Google+

ABCs on student loan interest deductions

Get PDF file

by on
in Small Business Tax

Q. My daughter is paying off her college student loans. (She graduated in 2008.) Can she deduct all the payments if she itemizes? D.J., Denville, N.J.

A. Not exactly. For starters, your daughter may claim a deduction for interest on student loans whether or not she is an itemizer. The deduction is claimed “above the line,” but is limited to $2,500 a year. It begins to phase out for single filers with an AGI of $60,000 ($120,000 for joint filers).

Tip: A few years ago, you could only deduct 60 months’ worth of student loan interests. The 2010 Tax Relief Act extended the temporary repeal of the 60-month rule through 2012.

Related Articles...

Leave a Comment

Previous post:

Next post: