| Taxpayers who have taken out loans to pay the cost of
attending an eligible educational institution for themselves, their spouse
or their dependent(s) generally may deduct the interest paid on these
loans. To be eligible, a loan must have been used to pay tuition,
fees, room and board, and related expenses at an eligible educational
institution. The student must have enrolled at least half-time in an
undergraduate or graduate program leading to a degree or
certificate. The deduction is not only for federally guaranteed
loans, but for any loan meeting the eligibility requirements including
loans issued by schools, banks, and not-for-profit associations.
The deduction amount varies depending on your income (with the maximum
deduction being $4,000 each year). To be eligible for the full amount of
the deduction, your
adjusted gross income must be less than $65,000 (or $130,000 if you are
married and file jointly with your spouse).
Additional information on all education-related tax benefits is
available in IRS Publication 970. This publication can be viewed
online by visiting the IRS website at http://www.irs.gov
or you can access the publication in Adobe Acrobat format by clicking
here. (Adobe Acrobat Reader, a free download from http://www.adobe.com
is required to view this publication from the IRS) |
