Student Loan Tax Deduction

If you’re like the majority of PA school graduates, you have some student loans. With the average PA student borrowing close to $100,000 in student loans it’s important to get money back when you can. With tax day right around the corner, don’t forget to get the proper tax deduction for you student loans.

Check out this article on what you can deduct for student loans. For your federal taxes you can deduct the interest that you’ve paid on the loan, if you’re in the right tax bracket. If you qualify for the full deduction the most you could deduct would be $2,500, which means you’d get about $625 back. It’s not a huge amount and does not make it worth taking out student loans or delay paying them back, but it is something you don’t want to miss out on.

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Depending on the state that you live in you might have other deductions or credits for student loans or school costs.

If you are not sure if you qualify for the student loan deduction check with your tax professional, if you need help filing your taxes check out options such as H&R Block. One thing I like about H&R Block is that they give different options for your comfort level; from doing your taxes completely on your own to going in and having a tax professional do them for you. You can start doing them online and if you get stuck you can always head into a brick and mortar store to meet with a professional.

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