How to save money during tax season if you pay student loans
Deduct interest on federal income tax
SAN ANTONIO – If you’re paying interest on student loans, you could qualify to reduce the amount you pay in income tax.
The 1098-E tax form lists the amount of interest you pay on your student loans every year.
Only people who pay more than $600 in interest on student loans in one calendar year qualify.
If you're married filing separately -- or for 2015 if your modified adjusted gross income, or MAGI, is $80,000 or more if filing single or $160,000 if married filing jointly -- you can't deduct any student loan interest, according to Turbotax.com.
The maximum amount of interest you can deduct is $2,500, even if you paid more.
You don’t need a physical copy of your 1098-E to apply for the deduction.
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