PSA: Don't Forget to Deduct Your Student Loan Interest
Your finances are
probably already squeezed
when you're paying back a student loan, so you want to make sure you take advantage of every break you can. If you're going to prepare your
IRSlets you claim the student loan interest tax deduction on Form 1040, Line 33. Because it's considered an "above the line" deduction (i.e., an adjustment to your income), you don't have to itemize your taxes in order to claim it.
Keep in mind, this is a deduction and not a credit. That means claiming this deduction will reduce your taxable income by up to $2,500. In terms of real dollars saved, your total tax bill could be reduced by up to $625, depending on your income and how much student loan interest you pay.
There are a few qualifying guidelines (
this tool from the IRS
will help you see if you qualify), but this deduction applies to most
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