Also, certain tax breaks (such
as student loan deductions and child tax credits) can not be claimed, or are reduced, for separate filers.
If using the standard deduction makes sense for you, you don't have to worry about missing out on
the student loan deduction.
Once you graduate and begin paying interest, claim
your student loan deduction in any year which you are eligible.
Student loan deduction: If you've paid at least $ 600 in interest on a qualified student loan, you may be eligible to deduct up to $ 2,500.
For full details on eligibility requirements for
a student loan deduction and how to claim it, see IRS Publication 970, Tax Benefits for Education, or speak with a tax professional.
Like
the student loan deduction, Tuition and Fees is an above the line entry on your tax return, meaning it is available even if you don't itemize deductions with tax schedules.
And, like
the student loan deduction, the amount you can deduct phases out between $ 65,000 and $ 80,000 for single filers and between $ 130,000 and $ 165,000 for married couples filing jointly.
The student loan deduction will remain valid for any year of repayment until 2012.
That's your adjusted gross income with certain items added back in, including foreign income, foreign housing deductions,
student loan deductions, IRA contribution deductions and deductions for higher education costs.
Many people with a health profession degree such as medicine, optometry and dentistry have starting salaries in the 6 figures, which means if you're single,
no student loan deduction for you.
Some people make enough money that they aren't eligible for
the student loan deduction.
Furthermore,
the student loan deduction lets you deduct up to $ 2,500 of loan interest paid in the previous tax year from your taxable income.
That is, I could not take the IRA deduction, nor could I take
the student loan deduction.
Ultimately, it is difficult to know what the full effect of eliminating
the student loan deduction will be for borrowers.
However, the biggest impact of getting rid of
the student loan deduction may be the impact on a borrower's overall tax bill.
This is something that did not exist when
the student loan deduction was created in 1997.
That's your adjusted gross income with certain items added back in, including foreign income, foreign housing deductions,
student loan deductions, IRA contribution deductions and deductions for higher - education costs.