Recent Posts

Topics


« Is it possible to consolidate student loans that come from different banks? And how would I do that? | Main | Defaulted Student Loans - Special Loans Are Out There »

Question about Tax Returns. Can I use my Student Loans for a Tax Credit. How does that work?

By admin | March 30, 2009

Agent 47 asked:


In my Student Loan accounts it says that I will be able to use a reportable tax interest form 1098E. Does that mean I can use my loan repayments as a tax credit or deductible? By the way, My loans are currently on Forbearance.

Darlene
Share and Enjoy: These icons link to social bookmarking sites where readers can share and discover new web pages.
  • Digg
  • Bumpzee
  • del.icio.us
  • Facebook
  • Furl
  • Mixx
  • NewsVine
  • Reddit
  • StumbleUpon
  • YahooMyWeb
  • Google

  • How will my student loans affect my tax returns?
  • Do lenders view student loans just as they do other debt such as credit cards?
  • Is good credit possible after a defaulted student loan?
  • How to get rid of student loans before they really start accumulating?
  • Does a student loan and a bank loan affect your credit the same way?
  • How long after graduation to pay a student loan?
  • How do I pay defaulted student loans to save my credit?

    • Topics: student loans |

    No Responses to “Question about Tax Returns. Can I use my Student Loans for a Tax Credit. How does that work?”

    1. spicertax Says:
      March 31st, 2009 at 7:48 pm

      You can deduct the loan interest shown on the Form 1098. That may not be all of your loan payments since loan principal is not deductible.

    2. Griffin Says:
      April 3rd, 2009 at 7:16 pm

      If you receive a 1098, it will tell you want you can report on your taxes. That amount is technically not a deduction, it is an adjustment to your income. It would be entered on line 33 (of form 1040) or line 18 (of 1040A). It will reduce you overall taxable income in a manner similar to a deduction. See page 30 of the attached pdf link from the IRS.