Your modified adjusted gross income must be less than $85,000 — or $170,000 if you’re married and filing jointly. If you make between $70,000 and $85,000, your deduction might be less based on the IRS’s phaseout rules. TurboTax says it wants to help its customers find areas to save money, and student debt is just the first major area outside of taxes that the company is diving into. TurboTax users have an aggregate $135 billion in student loan debt, the company says, along with $2.1 trillion in mortgage debt, and $167 billion in auto loans; they make $16.5 billion in charitable donations each year.
Since this amount is not included in your federal adjusted gross income, you can only include $1,600 ($2,400 – $800) in the subtraction on your Maine return. You must provide documentation supporting your claim. Maine Revenue Services will review the information you include with your return.
When to deduct student loan interest
Servicemembers and their families can also fill out the SCRA benefit form online. The student is enrolled at least half-time in a program leading to a degree, certificate, or other recognized educational turbotax student loan interest credential at an eligible educational institution. In this case, your current federal loan servicer will provide you with a copy of your 1098-E if you paid interest of $600 or more in 2021.
The companies did say, however, that their goal is to eventually make the process so seamless that tax filers can get a personalized refinance rate from Earnest with a single click. TurboTax and Earnest announced the deal in December, and an estimated 5 million Turbo Tax users who have student debt started seeing the results in January, at the start of tax-filing season. Use our free tax tools and calculators https://turbo-tax.org/ to help calculate taxes or determine eligibility for certain credits. Review other tax savings for all taxpayers, including students. Education Savings Plans, or 529 Plans, can be used for K-12 student education on your 2022 Return, due April 18, 2023. Prepare and e-file your return with eFile.com to get the most out of your 2022 Tax Refund Calculator in 2023 and let the eFile app do the hard work for you.
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To calculate your interest deduction, you take the total amount you paid in student loan interest for the tax year — from January 1 to December 31, for most people — and deduct it from your taxable income. The deduction is capped at $2,500, and it may be reduced the higher your income is. Federal and private loans both qualify for deduction. It’s almost tax time, and if you’re a college student or young adult, one of the most common tax deductions that you receive is the student loan interest tax deduction. You can claim the credit based on loan payments you paid directly to the lender. Note that your employer will most likely include the amounts reimbursed to you in your taxable income in box 1 of your Form W-2. The student loan interest deduction can take some of the sting out of the interest you pay on your student loans each year.
- Except that for tax years beginning on or after January 1, 2015, an individual working outside Maine for up to 3 months during the Maine residency period will be considered to have worked in Maine during those months.
- Description of benefits and details at hrblock.com/guarantees.
- You must provide documentation supporting your claim.
- Consult with a tax advisor for education tax credit and deduction eligibility.
If you’re using form 1040EZ or Form 1040NR-EZ, this deduction is not available. When you use an ATM, in addition to the fee charged by the bank, you may be charged an additional fee by the ATM operator. See your Cardholder Agreement for details on all ATM fees.