Tax Blog

February 25, 2016
If you have a student loan, there are some things you need to know this tax season.
If You’re Single

A student loan borrower can deduct up to $2,500 on student loan interest. If you’re in the 25% tax bracket, the deduction is $625. If you’re in the 15% tax bracket, the deduction is $375.

You must have an adjusted income of less than $80,000 and not be claimed as a dependent by anyone else.

You also must have paid interest on your student loan during the 2015 tax year, the loan must be in your name, and you must have been enrolled in school at least half the time since the loan was taken out.

If You’re Married

If you and your spouse both have student loan debt and are filing jointly, the maximum deduction cannot exceed $2,500. However, if you are filing separately, you can’t claim any deduction at all.

If your repayment plan is income driven, there could be a significant, negative impact to filing jointly.

The tax professionals at Fiscal Tax can help you determine the best strategy for you. Find the location nearest you.

Read the full story by Serena Elavia.
 

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