All Topics > Education > Student Loan Interest Deduction >

Student Loan Interest Deduction Illinois

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 -Z Jewelry & Swap Inc
(309) 637-4531
414 Sw Adams St
Peoria, IL

Beneficial Illinois Inc
(309) 688-8587
3927 N University St Ste A
Peoria, IL

All Credit Lenders
(309) 686-2200
4220 N Sheridan Rd
Peoria, IL

Associated Bank Illinois
(309) 671-1700
125 NE Jefferson St
Peoria, IL

National City Bank
(309) 655-5387
301 S.W. Adams St.
Peoria, IL

South Side Trust & Savings Bank
(309) 676-0521
2119 SW Adams Street
Peoria, IL

Bank of America
(309) 680-4380
135 S. LaSalle St
Chicago, IL

Accelerated Financial Services
(309) 686-9801
911 E Seneca Pl
Peoria, IL

Busey Bank
(309) 683-2300
6699 N. Sheridan Road
Peoria, IL

Central Illinois Bank
(309) 699-3405
800 W. Trailcreek Dr
Peoria, IL

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 -Z Jewelry & Swap Inc

(309) 637-4531
414 Sw Adams St
Peoria, IL

Read more about Student Loan Interest Deduction

- Securing Funding for an Online Degree Illinois

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

Regional Articles

- Private and College-Sponsored Loans Illinois

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

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

Related Local Events

Midwest Clinic 63rd Annual Conference
Dates: 12/15/2009 - 12/19/2009
Location: Hilton Chicago Hotel
Chicago, IL
View Details

Latino Book & Family Festival - Chicago 2009
Dates: 11/7/2009 - 11/8/2009
Location: Unity School
Cicero, IL
View Details

Discovering Your Memory Power with Tom Weber
Dates: 10/29/2009 - 10/29/2009
Location: Belvedere Events-Banquets
Elk Grove Village, IL
View Details

Hospital Case Management
Dates: 10/12/2009 - 10/13/2009
Location: Hyatt Regency Chicago
Chicago, IL
View Details

October Teen Driver's Education
Dates: 10/5/2009 - 10/5/2009
Location: Howard Driving School
Oak Park,, IL
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