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Student Loan Interest Deduction Michigan

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

Bank of America
313-875-2248
3031 W Grand Blvd
Detroit, MI

48226-3900
313-873-3310
9108 Woodward Ave
Detroit, MI

Advantage Cash Advance
313-422-8785
7722 East Eight Mile
Detroit, MI

Cash Connection
313-491-8400
10800 Grand River Ave
Detroit, MI

Advance America
313-342-1060
13601 W 7 Mile RD
Detroit, MI

Mo Money Taxes
313-521-6000
12920 Gratiot Ave
Detroit, MI

Federal Collateral Society
313-961-4361
1117 Washington Blvd
Detroit, MI

Lmi Group LLC
313-216-8137
5800 Warwick St
Detroit, MI

Michigan Cash LLC
313-869-2274
2974 W Davison
Detroit, MI

Allied Cash Advance
(616) 225-9122
301 S Maplewood St
Greenville, MI

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

Bank of America

313-875-2248
3031 W Grand Blvd
Detroit, MI

Read more about Student Loan Interest Deduction

- Federal Perkins Loan Michigan

For students who can demonstrate financial need and plan to attend a participating school, the Federal Perkins Loan is an excellent, low-cost source of financial aid for your postsecondary education.

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

Regional Articles

- Securing Funding for an Online Degree Michigan

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

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