“Welcome back!” These two
words can really make a college student cringe. Back to dorm life, late night
cramming, long financial aid lines, and the daunting challenge of getting your
books from the campus library before they sell out.
The expenses that come
with being a college student can sometimes be more than we anticipate. In fact,
many of us rely on student loans just to get us through the semester. I know
this feeling all too well!
We all dread having to
repay our loans once we graduate, but student loans may not be so bad after
all! The money paid towards interest on your student loans is tax deductible,
which is great for you and your wallet.
You can deduct student
loan interest on your tax return if:
- interest was paid on a student loan that is in
your name during the tax year,
- you cannot be claimed as a dependent on another
- you are not filing as “married filing
- your loans were used for educational expenses
for you, your spouse, or your dependent,
- loan money covered educational expenses for a
student enrolled at least half-time in an educational program at an accredited
For more details on the student
loan interest deduction, check out the IRS website or stop
into your local
Liberty Tax as income restrictions and other guidelines may apply.
Take it from someone
who’s been there. Keep track of your
interest payments and take advantage of an awesome tax break at the end of the
year. Get to the campus library and locate a Liberty Tax professional to assist
you with claiming your savings!