This Calculator Calculates the Student Loan Tax Deduction
If you are repaying a student loan, you are most likely eligible for a tax deduction on student loan interest . This calculator from Student Loan Hero estimates how much you can expect back.
If you meet the income requirements, you should be eligible for the deduction. The IRS explains :
Typically, personal interest you pay, other than certain mortgage interest, is not deductible from your tax return. However, if your Modified Adjusted Gross Income (MAGI) is less than US $ 80,000 (US $ 160,000 if filing a joint return), a special deduction is allowed for paying interest on a student loan (also known as an education loan) used for higher education. education. For most taxpayers, MAGI is the adjusted gross income shown on their federal tax return before deducting any deductions for interest on student loans. This deduction can reduce your taxable income by up to $ 2,500.
With the Student Loan Hero tool, you can get an idea of this deduction and all you have to do is answer a few quick questions about your financial situation. Once you have done this, the calculator will tell you the amount you can deduct and your actual tax benefit.
Try the link below.
Student Loan Interest Deduction Calculator | Student loan hero