03.05.10 | Stafford Loan Interest is Tax Deductible
Did you know that the interest you pay on your Stafford loan may be tax deductible? It is one of the perks of an education loan. You can claim this deduction if you meet the following conditions:
- You paid interest on a qualified student loan in the last tax year (2009 for anyone filing now). A qualified student loan is a loan you took out solely to pay qualified higher education expenses.
- Your filing status is not married filing separately
- Your modified adjusted gross income is less than $70,000 ($145,000 if filing jointly)
- You and your spouse, if filing jointly, cannot be claimed as dependents on someone else’s return
The interest you pay on the Stafford loan money that you borrowed is tax deductible up to $2,500 per year. This can be a huge deduction that you should definitely take advantage of if you qualify!
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