Contact UsWe need to find out information on our daughters student loan debt. Are there any special forms that she needs to fill out at tax time regarding her student loan debts? What information should she gather from lenders before filing? What tax deductions can she take? If she has defaulted how does this effect her tax return?
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Tax Professional Answers
Barry Fowler
You may be able to deduct interest you pay on a qualified student loan. Generally, the amount you may deduct is the lesser of $2,500 or the amount of interest you actually paid.
The deduction is claimed as an adjustment to income so you do not need to itemize your deductions
However, you can claim the deduction if all of the following apply:
• You paid interest on a qualified student loan in tax year 2014
• You are legally obligated to pay interest on a qualified student loan
• Your filing status is not married filing separately
• Your modified adjusted gross income is less than a specified amount which is set annually, and
• You and your spouse, if filing jointly, cannot be claimed as dependents on someone else's return
A qualified student loan is a loan you took out solely to pay qualified higher education expenses.
If you paid $600 or more of interest on a qualified student loan during the year, you will receive a Form 1098-E
If you are delinquent on your student loan the IRS could keep any refund due you to pay for the student loan.
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498 weeks ago
The deduction is claimed as an adjustment to income so you do not need to itemize your deductions
However, you can claim the deduction if all of the following apply:
• You paid interest on a qualified student loan in tax year 2014
• You are legally obligated to pay interest on a qualified student loan
• Your filing status is not married filing separately
• Your modified adjusted gross income is less than a specified amount which is set annually, and
• You and your spouse, if filing jointly, cannot be claimed as dependents on someone else's return
A qualified student loan is a loan you took out solely to pay qualified higher education expenses.
If you paid $600 or more of interest on a qualified student loan during the year, you will receive a Form 1098-E
If you are delinquent on your student loan the IRS could keep any refund due you to pay for the student loan.