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Student Loans: Here's How To Save Money On Your Taxes

Source Date: 
Monday, February 4, 2019
Categories: 

Want to save money on your taxes?

Here's what you need to know about student loans and taxes.

Student Loans: Taxes

If you made payments on your federal student loans in 2018, you may be able to save money on your federal income taxes.

1. Student Loan Interest Deduction

In certain cases, you can deduct on your federal income taxes the student loan interest you paid on your federal student loans.

Your student loan servicer for your federal student loans will provide you with a Student Loan Interest Statement, which is also known as Form 1098-E. Focus on the amount of interest you paid, not your total student loan payment. The amount of interest you paid on your federal student loans is what may help you receive a tax deduction.

If you paid $600 or more in interest: you will receive at least one 1098-E from your federal student loan servicer.

"Nothing in life is to be feared. It is only to be understood."
– Marie Curie
"There is scarcely anything that drags a person down like debt."
– P. T. Barnum
“This would be a much better world if more married couples were as deeply in love as they are in debt.”
– Earl Wilson
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– Irwin "Professor" Corey
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"Bankruptcy laws allow companies to smoothly reorganize, but not college graduates burdened by student loans."
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“What I would like to do... once I take care of all my kids' student loans, is buy a red 1965 Mustang and fully restore it.”
– Mike Quigley