A Special Note On Interest Deductibility

"A Special Note On Interest Deductibility" submitted by SchoolGrantsfor Editorial Team and last updated on Monday 25th April 2011

You may be able to deduct up to $1,500 for interest paid on loans used to cover education expenses, including tuition, room and board, and transportation. It's best to check with a tax consultant, or review your 1040 instructions manual, as this tax deduction is phased out at certain income levels. The deduction can be taken in addition to the standardized deduction or itemized deductions already claimed. The amount you can deduct will increase in upcoming years: $2,000 in 2010, and $2,500 in 2011.

Also you should know:
Student Loan Interest Deduction
Interest and Interest Rate
Federal Tax Benefits Overview
Gross Income, Adjusted Gross Income (AGI) and Modified Adjusted Gross Income (MAGI)
A Special Note On Interest Deductibility
Tax Incentives for Education
Loan Repayment Incentives
Federal Taxation of financial aid for students
Lifetime Learning Tax Credit
529 College Savings Plans or Qualified Tuition Programs (QTP)