Don't Forget To Claim Your Student Loan Deduction

If you paid on student loans last year, don’t forget that you can deduct the interest paid up to $2,500 as long as your parents don’t claim you as a dependent, writes Kiplinger. “You can deduct up to $2,500 in student-loan interest paid in 2007 if your income for the year was $55,000 or less if single, or $110,000 or less if married filing jointly.” If you make under $70k single or $140k married, you can still take a partial deduction.

You can take the deduction regardless of whether you itemize. You may even qualify to take the write-off yourself if your parents paid the interest on a loan for which you were legally liable (your parents, however, cannot claim the deduction if they weren’t liable for the loan).

The IRS says the $2,500 deduction can include “both required and voluntary interest payments,” which is a good thing to keep in mind in the coming months if you want to maximize the deduction for 2008.

“Deducting Student-Loan Interest” [Kiplinger]

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“Student Loan Interest Deduction” [IRS]
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