As “Tax Day” approaches, you are probably hoping to receive a tax refund. If you have been paying off your student loan over the course of 2014, you just may get your wish! The student loan interest deduction can be a significant help in getting a refund, and most student loan payers qualify for it.
You can use the student loan interest deduction to subtract the amount you paid on student loan interest (up to $2500) from your taxable income. Payments made toward private and/or federal student loans can qualify. In order to be eligible for the student loan deduction, you must have paid the interest on the student loan during the prior tax year, your modified adjusted gross income is less than $75,000 to get any deduction, you filed your taxes as a single or married couple filing jointly, and you are legally obligated to make the student loan payments. It is important that you are not required to itemize your deductions to take advantage of the student loan interest deduction. Finally, there is no restriction on how many years you can claim the student loan interest deduction, as long as you qualify for it.
If you’re wondering how you will know how much interest you paid on your loan, the servicers for your student loan is required to send you a 1098-E form if you paid more than $600 in interest. A section on this form will show the amount of interest you paid over the past year. The maximum amount you are allowed to deduct is $2500. If you did not pay more than $600 in interest over the year, you will have to look at your statements to determine how much you did pay.
To learn more about how we can help you with your student loan debt, contact our office to schedule an initial consultation.
Contact the “Milwaukee Bankruptcy Attorneys,” DeLadurantey Law Office, LLC. DeLadurantey Law Office focuses on student loan debt, Chapter 7 and 13 bankruptcy, debtor’s rights, debt negotiations, debt relief, mortgage loan modifications, and foreclosure defense. A “defender of the little guy, “DeLadurantey Law Office serves the following location – Milwaukee, South Milwaukee, West Milwaukee, Waukesha City, Waukesha Town, Kenosha, Racine, and all other municipalities in Milwaukee County, Waukesha County, Kenosha County, and Racine County. We can be contacted by phone: (414) 377-0518 and can be found on the Internet and on Facebook.