Are payments to my federal student loan tax-deductable?

The interest you pay on student loans may be deductible as an above-the-line adjustment on your federal return. You and your loan need to meet certain criteria first, and then there is a limit on how much you can deduct if you do qualify($2500). At the beginning of the year, your lender may send you a summary of the interest you paid them on a form 1098-E. If they don't and you know you did pay them interest then call them and they should furnish you with that information sometime in early '08. Sometimes if the interest you paid doesn't exceed a certain amount then they may not issue a 1098-E unless you specifically request it. The IRS will also receive copies of 1098-E's issued to you. To find out more then read the link below.

Are payments to my federal student loan tax-deductable?

Yes. But only the interest on those loans will be deductible from your taxes.

So, for example, If you paid $2,000 in interest on your student loans for a year. Those will be deducted from your gross income. ALL student loan banks, salliemae etc will issue you a report on the interest you paid %26quot;year to date%26quot; for the calendar year (Jan through Dec).

This will help you on your taxes- Your total payments, i.e. $300 * 12 ($3,600), will not be deductible, ONLY the interest, which will be maybe, just guessing, $3,000).

Best regards.