Did you pay for student loans in 2018 and trying to understand the tax deductions for 2018?
The tax deductions for students in 2018 will be for a maximum amount of $2,500.
The following are the key points to note to deduct student loan interest.
- Eligible expenses are tuition, fees, room and board, books and supplies for yourself, spouse or any other dependents to attend an eligible educational institution.
- At least half of the full time-course should ultimately result in an associate degree, bachelors or similarly recognized credential.
- A deduction is no longer available if you are unmarried and your adjusted gross income is in the range of $65,000-$80,000. For joint filers, the phase-out is between an adjusted income of $135,000-$165,000.
- Married individuals filing separately are not eligible for this deduction.
- If an education loan is refinanced, the refinanced loan will also qualify for this deduction.
- If parents are not eligible due to income limits, then the children can get the loan transferred in their name. The start date of the loan should be after the graduation date if they are filing returns under their parent’s tax returns.
- The student loan is available to be claimed only for the expenses that were incurred in the year when the student studied for at least one academic period during the year.
1098- T should be mailed out by January 31st of each year by your lender. If you do not receive the statement by this date, call or mail your lender to send a copy of the 1098-T.
Alternately, if there are still delays and you are unable to received 1098-T contact a tax professional, so they can provide you necessary guidelines to file your tax returns.
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