The education loan interest deduction can lessen your taxable earnings by up to $2,500.
Matt Carter Updated 5, 2020 february
According to your income tax bracket, claiming the education loan interest deduction will save you just as much as $550 on your own yearly taxation bill.
There are some conditions to meet up with, but because you don’t need to itemize your deductions if you do qualify, it’s easy to take advantage of. Here’s all you need to realize about claiming the education loan interest deduction.
What’s the education loan interest deduction?
The education loan interest deduction usually takes a number of the sting out from the interest you spend in your student education loans every year. If you’re carrying the average education loan financial obligation of $34,000 at a normal interest of 4.8%, you’re spending about $1,500 per year in interest.
Luckily for us at taxation time, you might be qualified to subtract up to $2,500 in education loan interest re re re payments from your earnings and profits, reducing the modified revenues (AGI) that you’re taxed on. Read more