fbf

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Apr 2, 2007
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I have checked the IRS and didn't really find the answer. Anybody have any clue? Is the stafford loan or GradPlus loan tax deductible?
 
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fbf

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Apr 2, 2007
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Any student loan interest that you pay is tax deductible (subject to certain conditions.)

Next time you search the IRS web site, look for "Student Loan Interest Deduction" for all of the details.

Thanks. I did see something about up to $2500 deduction under certain condition. But,only $2500 ? com'n...
 

plauto

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Sep 16, 2007
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Thanks. I did see something about up to $2500 deduction under certain condition. But,only $2500 ? com'n...
you might be referring to the Lifetime Learning Credit or the other credit I believe is called Hope. A credit and a deduction are 2 very different things for the IRS. The interest is tax deductible except for a few exception. Credits for education expenses are a different thing.
 

yadayadadude

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Mar 11, 2005
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Thanks. I did see something about up to $2500 deduction under certain condition. But,only $2500 ? com'n...
Yup, it's only $2500. And you're only eligible in your AGI is under the ceiling -- I believe it's $55K for a single filer and something like $135K for married filing jointly. In other words, if you're paying off your student loans as a resident, you may see a small tax advantage. Once you're an attending, forget about it.
 

MOHS_01

audemus jura nostra defendere
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Oct 2, 2005
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Yup, it's only $2500. And you're only eligible in your AGI is under the ceiling -- I believe it's $55K for a single filer and something like $135K for married filing jointly. In other words, if you're paying off your student loans as a resident, you may see a small tax advantage. Once you're an attending, forget about it.
What he said... but I believe that the ceiling is higher than what is quoted here. Basically, give it up -- you will be paying for student loans with after tax dollars. Sucks, but there seems to be no way around it.