Dental/Grad School Loans/Debt

[qwerty86]

Hello! Once you graduate with your degree and start paying off your federal loans, does the govt. provide you with any tax benefits while you are paying off your federal loans. Sorry, its a very open ended question.

---

Members don't see this ad.

 

[Dentalist]

no, your loans are not tax-deductible.

 

[Hysteria24]

no, your loans are not tax-deductible.

I believe in general, part of them are tax-deductible. However as dentists we make above a certain income threshold, and thus lose out on any of the benefits.

 

[Dentalist]

Yep. you can deduct upto $2,500 per year if you make less than $65,000, which is very unlikely for us dentists.

I believe in general, part of them are tax-deductible. However as dentists we make above a certain income threshold, and thus lose out on any of the benefits.

 

[DCRedskinsRule]

Is the interest that you have to pay tax deductible? I thought I remember hearing that somewhere? But I don't remember how that works.

 

[Hysteria24]

Is the interest that you have to pay tax deductible? I thought I remember hearing that somewhere? But I don't remember how that works.

I think the interest is the only tax deduction one can take. But as stated by Dentalist, only $2,500 of interest, and only if one makes below a certain income.

From an IRS website:

"Generally, personal interest you pay, other than certain mortgage interest, is not deductible on your tax return. However, if your modified adjusted gross income (MAGI) is less than $70,000 ($140,000 if filing a joint return) there is a special deduction allowed for paying interest on a student loan (also known as an education loan) used for higher education. For most taxpayers, MAGI is the adjusted gross income as figured on their federal income tax return before subtracting any deduction for student loan interest. This deduction can reduce the amount of your income subject to tax by up to $2,500 in 2007."

"The amount of your student loan interest deduction is phased out (gradually reduced) if your modified adjusted gross income (MAGI) is between $55,000 and $70,000 ($110,000 and $140,000 if you file a joint return). You cannot take a student loan interest deduction if your MAGI is $70,000 or more ($140,000 or more if you file a joint return)."

http://www.irs.gov/publications/p970/ch04.html

 

[StL_to_Boston]

You can deduct only up to $2500 worth of interest you paid toward your loans on your taxes. Any more than that you can't deduct... (but at least you paid it!)

Wasn't there a law recently passed that lowered the interest rate on federal loans for undergraduates? Too bad no one could get it passed for grad students as well (I think ASDA was working on it but the govt. wouldn't budge.)

 

[smalldogman]

man, this is so unfair. This is almost like punishing those who work hard and/or are successful.

It'll be like slave labor for single dentists ( with debts in 200k-375k range ) to pay off loans in a reasonable time.

They should instead heavily tax the people/groups who create more financial burdens for the government. All I can think of right now would be people with children.

 

[Cold Front]

if you own an office, and your good accountant somehow trims your annual income to under $65k adjustable income (with deductibles coming from right and left)... and with the government's $2,500 deductibles a year... let's say you qualify for it over the period of your loan (30 years), that's about $75k, or $50k for 20 years, or $25k over 10 years.

remember, you pay yourself as a staff in your company, so you could set the salary (I guess reasonably) as $80k if you want.

there is always ways and means.

 

[golfer]

man, this is so unfair. This is almost like punishing those who work hard and/or are successful.

It'll be like slave labor for single dentists ( with debts in 200k-375k range ) to pay off loans in a reasonable time.

They should instead heavily tax the people/groups who create more financial burdens for the government. All I can think of right now would be people with children.

Uh....What? People with children create financial burdens for the government? I must of grown up different from you. I don't remember asking the government for a dollar when the ice cream truck came around. "These people" included your parents (I would assume not to long ago) and as I see it "these people" with children should be receiving the tax breaks (that and I have kids).

 

[makushin]

if you own an office, and your good accountant somehow trims your annual income to under $65k adjustable income (with deductibles coming from right and left)... and with the government's $2,500 deductibles a year... let's say you qualify for it over the period of your loan (30 years), that's about $75k, or $50k for 20 years, or $25k over 10 years.

remember, you pay yourself as a staff in your company, so you could set the salary (I guess reasonably) as $80k if you want.

there is always ways and means.

financial advice on SDN =

 

[ItsGavinC]

They should instead heavily tax the people/groups who create more financial burdens for the government. All I can think of right now would be people with children.

And old people with disease. Yuck, disease. Yuck, old people.

 

[HupHolland]

And old people with disease. Yuck, disease. Yuck, old people.

You forgot fat people, too.

We should tax them because they're responsible for a majority of health care costs!

-Hup!

 

[smalldogman]

You forgot fat people, too.

We should tax them because they're responsible for a majority of health care costs!

-Hup!

Good idea !! If we put this tax system in place, there will less inner-city dwellers having children ( The parents are usually deadbeat anyway and the kids go on to do drugs, kill people, and overload the welfare system. ) and there will be more people taking care of their health and getting in shape ! A real cure for cancer and heart disease !

You guys have justified my reasonings.