November 12, 2008

Federal student loans – tax deductable?

Posted in Misc at 8:29 AM by Joe From Boston


Yes!  In many cases you can deduct the interest you pay from your taxes.

The IRS publication 970, Tax Benefits for Higher Education explains these benefits in greater detail. You can call the IRS at 1-800-829-1040 with any additional questions you may have.

As with any other tax deduction, there are exemptions and qualifications, so read the form closely.  The relevant section begins at the bottom of the left column on page 25.

Please note – I am linking to the 2007 document as I can’t find the 2008 document yet (it may not have been released yet).  If you do want to claim this deduction, PLEASE CHECK FOR THE MOST CURRENT VERSION of this document before preparing taxes, as the rules change from year to year.

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3 Comments »

  1. Bala said,

    Nice blog.

  2. satria said,

    It is happy to see your posting. Yes really informative article. I will tell this information again to my friend, oh yes I suggest you to check my blog on http://www.top-studentloans.blogspot.com , I hope the article on my blog will be usefull for you… and we can share each other. thank you… 😉

  3. financialaidpodcast said,

    According to our friends at the IRS, the Tax Year 2008 1040 will be available sometime in mid to late December.


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