All Topics > Education > Student Loan Interest Deduction >

Student Loan Interest Deduction Connecticut

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

College Bound of Guilford, LLC
203-453-5116
115 State Street
Guilford, CT

Kindercare
203-453-8781
1445 Boston Post Rd
Guilford, CT

Learning House
203 453-3691
264 Church Street
Guilford, CT

LimeLite Dance Studio, LLC
203-458-2194
Water Street
Guilford, CT

Integrated Finance Services
(203) 356-0437
50 Glenbrook Rd
Stamford, CT

Gmr
(203) 229-1891
401 Main Ave
Norwalk, CT

National City Mortgage
(203) 268-3490
965 White Plains Rd Ste 10
Trumbull, CT

McCue Mortgage Co the
(860) 224-2683
New Britain, CT

Citifinancial
(860) 643-8188
1185 Tolland Tpke
Manchester, CT

Connecticut Community Investment Corporation
(203) 776-6172
100 Crown St
New Haven, CT

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

College Bound of Guilford, LLC

203-453-5116
115 State Street
Guilford, CT
College Bound offers expert guidance and assistance with all aspects of both secondary and post-secondary college planning and placements. Member of NACAC & HECA

Read more about Student Loan Interest Deduction

- Federal Graduate PLUS Loan Connecticut

The Federal Graduate PLUS Loan was designed to help graduate students pay for the cost of their educational expenses.

- Federal PLUS Loan Connecticut
- Federal Student Aid Connecticut
- Securing Funding for an Online Degree Connecticut
- Education Tax Credit/Deduction Connecticut
- Tuition and Fees Deduction Connecticut
- Federal Perkins Loan Connecticut
- Private and College-Sponsored Loans Connecticut
- Colleges For Communications Majors Connecticut
- Federal Stafford Loan Connecticut

Regional Articles

- Securing Funding for an Online Degree Connecticut

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

Related Local Events

Writers and Human Rights
Dates: 12/2/2009 - 12/2/2009
Location:
Torrington, CT
View Details

Swimming with Piranhas at Feeding Time
Dates: 12/15/2009 - 12/15/2009
Location: Mystic Arts Center
Mystic, CT
View Details

The Delaney Lectures: The Beautiful Bridge: Our Journey, From Speaking Our Stories to Writing Them
Dates: 11/13/2009 - 11/13/2009
Location:
Torrington, CT
View Details

The Holy Spirit and Ecology
Dates: 11/7/2009 - 11/7/2009
Location: Wisdom House Retreat and Conference Center
Litchfield, CT
View Details

Native American Education Day
Dates: 11/7/2009 - 11/7/2009
Location: Savin Rock Conference Center
West Haven, CT
View Details

Advertising	Food & Beverage	Nightlife
Business Services	Franchise	Online Database
Career	Health	Pets
Cars	Holidays	Real Estate Resources
Computer Hardware	Home Appliances	Retail & Consumer Services
Construction	Home Electronics	Software
Education	Home Services	Technology
Entertainment	Industrial Goods & Services	Telecommunications
Environmental	Insurance	Trade Shows
Family	Internet	Travel
Fashion	Legal	Weddings
Financial Services	Miscellaneous	World History

Advertising	Family	Home Services	Real Estate Resources
Business Services	Fashion	Industrial Goods & Services	Retail & Consumer Services
Career	Financial Services	Insurance	Software
Cars	Food & Beverage	Internet	Technology
Computer Hardware	Franchise	Legal	Telecommunications
Construction	Health	Miscellaneous	Trade Shows
Education	Holidays	Nightlife	Travel
Entertainment	Home Appliances	Online Database	Weddings
Environmental	Home Electronics	Pets	World History