All Topics > Education > Student Loan Interest Deduction >

Student Loan Interest Deduction North Carolina

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

Paragon Commercial Bank - Charlotte Office
(704) 644-4001
4725 Piedmont Row Drive
Charlotte, NC

CommunityOne Bank, N.A
(704) 658-9261
8231 Magnolia Estates Drive
Charlotte, NC

Reliable Loan & Jewelry
919-832-3461
307 S Wilmington St
Raleigh, NC

American General Finance
336-375-1335
2103 Pyramid Village Blvd
Greensboro, NC

Beneficial
(919) 490-5151
4711 Hope Valley Rd
Durham, NC

B & W Pawn Shop
336- 274-6910
1712 E Bessemer Ave
Greensboro, NC

Fidelity Acceptance
(919) 620-0464
1335 Hamlin RD
Durham, NC

American South Lending
336-547-9970
5500 Adams Farm Ln
Greensboro, NC

Arrow Pawn Jewelry Audio Check Cashing & Loan
919-821-0001
2421 Crabtree Blvd
Raleigh, NC

1st Choice Financial
919-873-9332
3901 Capital Blvd
Raleigh, NC

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

Paragon Commercial Bank - Charlotte Office

(704) 644-4001
4725 Piedmont Row Drive
Charlotte, NC

Read more about Student Loan Interest Deduction

- Tuition and Fees Deduction North Carolina

Tuition costs at public universities increased over 6% last year according to the College Board. In addition to rising tuition, your educational expenses might include books, activities fees, lab fees, and miscellaneous charges. Education tax benefits, including the Tuition and Fees Deduction, can help you cope with these climbing education costs.

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

Regional Articles

- Colleges For Communications Majors North Carolina

Communications is a booming major in the information age. If you are a student considering this major, you need to make sure you go to the right school.

- Tuition and Fees Deduction North Carolina
- Federal Student Aid North Carolina
- Federal Perkins Loan North Carolina
- Federal Graduate PLUS Loan North Carolina
- Federal PLUS Loan North Carolina
- Securing Funding for an Online Degree North Carolina
- Federal Stafford Loan North Carolina
- Private and College-Sponsored Loans North Carolina
- Education Tax Credit/Deduction North Carolina

Related Local Events

My Child Has What? Attention Deficit Hyperactivity Disorder (Adhd)
Dates: 1/5/2010 - 1/5/2010
Location: The Rankin Seminar Room
Charlotte, NC
View Details

My Child Has What? Technology For Adhd
Dates: 1/12/2010 - 1/12/2010
Location: The Rankin Seminar Room
Charlotte, NC
View Details

The Fletcher Forum Teacher Workshop
Dates: 2/8/2010 - 2/8/2010
Location: Harris Conference Center
Charlotte, NC
View Details

The Fletcher Forum On Learning Disabilities
Dates: 2/8/2010 - 2/8/2010
Location: The Fletcher School Gymnasium
Charlotte, NC
View Details

My Child Has What? Autism/Asperger'S Disorder
Dates: 2/23/2010 - 2/23/2010
Location: The Rankin Seminar Room
Charlotte, NC
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