Paying on your student loans for what seems like an eternity? No fun. But paying on that student debt could have a silver lining. According to a recent article by MSN Money, your student loan payments could mean a tax deduction.
“Anyone paying student loans may be able to deduct up to $2,500 of the interest paid in the past year on a qualified student loan, according to the IRS. And that deduction will be claimed as an adjustment to your income.
The deduction is available to anyone earning less than $80,000 (or $165,000 if you file a joint return), but it’s gradually phased out if your modified adjusted gross income is between $65,000 and $80,000.”
The article goes on to further explain the guidelines and eligibility for the tax credit, and how you can find out if you qualify.
To read the full article, and see if you qualify, visit the MSN Money site here.