Ease the burden of payments
The cost of higher education is steep and gets worse every year. Fortunately, if you pay interest on a qualified student loan, you’re generally able to deduct some of that interest.
Here are a few pointers to help guide you in claiming the deduction:
• You can deduct up to $2,500 in student loan interest that you paid during the year.
• You can claim the deduction as an adjustment to income, so you don’t need to worry about itemizing your deductions on Form 1040, Schedule A.
• You cannot claim the deduction in any tax year in which your filing status is married filing separate.
• For 2015, the deduction is subject to modified adjusted gross income (MAGI) phase-outs for anyone with MAGI between $65,000 and $80,000 ($130,000 and $160,000 for married filing jointly).
• You can claim the student loan interest deduction indefinitely until the loan is repaid.
If you have any questions on this topic or on any relevant credits that may be available to help you offset the cost of higher education, give me a call.