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Student Loan Interest Deduction Alabama

Student loans may be considered "good debt" in financial planning circles but there is nothing good about paying hundreds in interest each year. Luckily, you may be eligible for a tax break if you pay interest on your student loans.

1. Local Companies

2. Student Loan Interest Deduction

3. 2009 Stimulus Plan

4. Featured Local Company

1 . Local Companies

A Dollar Cash Advance
205-951-1556
1624 Montclair Rd
Birmingham, AL

Express Loans Co
205-853-3339
1477 Center Point Pkwy
Birmingham, AL

ACA Financial Services
(334) 393-8492
414 S Main St
Enterprise, AL

Advance America Cash Advance
(334) 308-1973
614 Enterprise Shopping Ctr
Enterprise, AL

CitiFinancial
(334) 347-2673
808 Glover Ave
Enterprise, AL

Chesterfield Company Loans
205-251-0187
1715 3rd Ave N
Birmingham, AL

Shoreline Credit Union
(251) 441-7400
901 Spring Hill Ave
Mobile, AL

1st South East Acceptance
(334) 393-8302
1032 Boll Weevil Cir
Enterprise, AL

Cash Cow
(334) 348-2251
1000 Rucker Blvd
Enterprise, AL

Bryant Bank
205-408-6401
5319 US Hwy 280
Birmingham, AL

2 . Student Loan Interest Deduction

Eligibility
You can deduct a maximum of $2,500 for student loan interest. To be eligible:

• You must be legally responsible for payments on a loan used to finance higher education
expenses.

• Your loan must finance your education, your spouse's education, or your child's
education.

• The qualifying student must have be enrolled at least half-time and working towards a
recognized credential at an eligible institution.

If you are married filing separately, or if someone else claims you as a dependent, you are not eligible for the student loan interest deduction.

Tips for Savvy Taxpayer
It's easy to take this deduction if you’re eligible--and it's easy to overlook in the sea of paperwork tax preparation involves.
• Watch your mail. Your lending institution will send you a Form 1098-E if you
paid $600 or more in interest on a student loan. The amount of interest you paid will
be reported on Form 1098-E, box 1. If you do not receive this form, contact the
lending institution.

• Deduct on Form 1040. You can claim the Student Loan Interest Deduction on
Form 1040 Line 33 or on Form 1040A Line 18.

• Know the limits. The maximum amount of student loan interest you can claim
is $2,500. The deduction is also limited by your total income. IRS Publication 970
includes a worksheet to calculate your deduction.

By following these tips it is easy to claim the student loan interest deduction. Doing so can make paying your taxes a little less painful this year.

Sources:
Internal Revenue Service
Federal Student Aid

3 . 2009 Stimulus Plan

Starting in the 2009 tax year, under the American Recovery and Reinvestment Act (ARRA), more parents and students will qualify over the next two years for a tax credit, the American Opportunity Credit, to pay for college expenses.

The American Opportunity Credit is not available on the 2008 returns taxpayers are filing during 2009. The new credit modifies the existing Hope Credit for tax years 2009 and 2010, making the Hope Credit available to a broader range of taxpayers, including many with higher incomes and those who owe no tax. It also adds required course materials to the list of qualifying expenses and allows the credit to be claimed for four post-secondary education years instead of two. Many of those eligible will qualify for the maximum annual credit of $2,500 per student.

The full credit is available to individuals whose modified adjusted gross income is $80,000 or less, or $160,000 or less for married couples filing a joint return. The credit is phased out for taxpayers with incomes above these levels. These income limits are higher than under the existing Hope and Lifetime Learning Credits

Click here to read more from irs.gov

Click here for application form

4 . Featured Local Company

A Dollar Cash Advance

205-951-1556
1624 Montclair Rd
Birmingham, AL

Read more about Student Loan Interest Deduction

- Securing Funding for an Online Degree Alabama

There are available sources of funding to finance an online degree. Scholarships and grants are available not only for students attending regular schools, but for those pursuing an online bachelors degree as well.

- Federal PLUS Loan Alabama
- Federal Perkins Loan Alabama
- Federal Graduate PLUS Loan Alabama
- Tuition and Fees Deduction Alabama
- Education Tax Credit/Deduction Alabama
- Federal Stafford Loan Alabama
- Private and College-Sponsored Loans Alabama
- Colleges For Communications Majors Alabama
- Federal Student Aid Alabama

Regional Articles

- Private and College-Sponsored Loans Alabama

Students who do not qualify for federal financial aid or who need additional assistance, can apply for private loans.

- Federal Perkins Loan Alabama
- Securing Funding for an Online Degree Alabama
- Education Tax Credit/Deduction Alabama
- Tuition and Fees Deduction Alabama
- Federal PLUS Loan Alabama
- Federal Student Aid Alabama
- Federal Graduate PLUS Loan Alabama
- Colleges For Communications Majors Alabama
- Federal Stafford Loan Alabama

Related Local Events

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Dates: 12/1/2009 - 12/1/2009
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Marion, AL
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Dates: 11/8/2009 - 11/8/2009
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Computer Hardware	Franchise	Legal	Telecommunications
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Entertainment	Home Appliances	Online Database	Weddings
Environmental	Home Electronics	Pets	World History