Education Loan Interest Deduction. The attention should have been compensated through the income tax 12 months for the debtor to claim the education loan interest deduction.

The education loan interest deduction has permitted borrowers to subtract as much as $2,500 per year in interest compensated on federal and personal student education loans on the federal earnings taxation statements considering that the 1998 income tax 12 months.

The education loan interest deduction is taken being an exclusion that is above-the-line earnings, therefore taxpayers do not need to itemize to claim the deduction. Rather, they are able to claim both the education loan interest deduction additionally the standard deduction.

Financial Effect

Because the education loan interest deduction can be an exclusion that is above-the-line income, it decreases the taxpayer’s modified gross earnings (AGI). Continue Reading “Education Loan Interest Deduction. The attention should have been compensated through the income tax 12 months for the debtor to claim the education loan interest deduction.”

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