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Honeycombe8

(37,648 posts)
31. The student loan deduction is still there. $2,500 cap per return.
Wed Apr 24, 2019, 10:01 PM
Apr 2019

That was true before the tax cut bill, and after. It's treated as an adjustment to income, which was the way it was in 2017, too.

https://www.thebalance.com/student-loan-interest-deduction-3193022 :

The Federal Student Loan Interest Deduction
Interest Paid on Student Loans Is Still Tax Deductible

It was initially believed that this lucrative tax break for students would disappear effective 2018 with the passage of the Tax Cuts and Jobs Act (TCJA) at the end of 2017. An early version of the tax bill did indeed include a provision to do away with the student loan interest deduction. Fortunately, many congressmen listened when students, colleges, and universities protested in significant numbers.

The final version of the TCJA pulled the deduction back into the fold. It's still alive, well, and available in 2018.


You can deduct interest on student loans paid by you, or by your spouse if you file a joint return. You can't claim the student loan interest deduction if you file a separate married return. You must use the single, head of household, qualifying widow(er), or married filing jointly filing status to claim it, and you can't be claimed as a dependent on anyone else's tax return.
(SNIP)
The most student loan interest you can claim as a tax deduction is limited to $2,500 as of the 2018 tax year. This limit hasn't changed from the 2017 tax year.

The deduction is also limited by your income—it's reduced for taxpayers with modified adjusted gross incomes (MAGIs) in a certain phase-out range and it's eventually eliminated entirely if your MAGI is too high. See the chart below for the exact income limits that apply. They depend on your filing status.

The Student Loan Interest Deduction Phase-Outs
The phase-out ranges for the 2018 tax year are:

Filing Status Phase-out Begins Phase-out Ends
Married Filing Jointly 135,000 165,000
Qualifying Widow(er) 65,000 80,000
Head of Household 65,000 80,000
Single 65,000 80,000


Turbotax:

When to deduct student loan interest
The student loan interest deduction is taken as an adjustment when calculating your adjusted gross income, or AGI. This means you don't have to itemize your deductions to take it.

To qualify, the interest payments you make during the year must be on a student loan that you took out to put yourself, your dependents or spouse through school. If you're married filing separately, or for 2018 if your modified adjusted gross income, or MAGI, is $80,000 or more if filing single or $165,000 if married filing jointly, you can't deduct any student loan interest. Your MAGI is essentially your total income minus the other adjustments you take, except for the tuition, student loan and domestic production activities deductions.

When you use TurboTax to prepare and file your taxes, you don’t need to do any of these calculations on your own. We’ll ask you questions in plain English, handle all the calculations, and put all of your answers on the appropriate tax forms.

How much interest is deductible
If you're eligible to deduct student loan interest, TurboTax will put your information into Form 1040 to write it off. Have your 1098-E forms available when preparing your return to determine your total student loan interest paid. You can also add student loan interest payments you made that aren't reported on Form 1098-E to this total as long as the interest is paid on a qualified loan. Regardless of how much interest you paid, the maximum you can deduct is $2,500.

https://turbotax.intuit.com/tax-tips/college-and-education/what-is-a-1098-e-student-loan-interest/L8Tr1X9hD

I knew this was what was going to happen Doreen Apr 2019 #1
Also, there are people whose situations didn't change at all but they're paying now. forgotmylogin Apr 2019 #12
So right CountAllVotes Apr 2019 #16
It amazes me CountAllVotes Apr 2019 #2
"You have to pay if you want to collect." ??? Laffy Kat Apr 2019 #10
The minds these people have CountAllVotes Apr 2019 #15
I wonder if it was because of the property tax cap. Honeycombe8 Apr 2019 #3
Student loans quakerboy Apr 2019 #4
You are intelligent.. congrats at140 Apr 2019 #6
So the govt instructed the employers as to the wrong % to withhold? Honeycombe8 Apr 2019 #8
They withheld less to make Trump tax-cut look bigger at140 Apr 2019 #18
"Drop in withholdings"? Oh, you mean the amt the employer withheld from paycheck. Honeycombe8 Apr 2019 #7
They didnt make a mistake. they did as as they were instructed to do quakerboy Apr 2019 #9
Nailed it quakerboy! .. nt at140 Apr 2019 #21
Even the lower earnings categories got a small tax cut, in the bracket rate. Honeycombe8 Apr 2019 #23
How many people with lower incomes had property taxes over $10K anyway ? MichMan Apr 2019 #28
True. The property tax cap hit upper middle class, or those in high-tax states. Honeycombe8 Apr 2019 #33
Why wonder? quakerboy Apr 2019 #32
Look a the time of my posts. Honeycombe8 Apr 2019 #34
Your statement of ... aggiesal Apr 2019 #36
Yes. The Repubs have been after mortgage interest & prop tax deductions for YEARS... Honeycombe8 Apr 2019 #37
I think it was reported the admin did it on purpose. forgotmylogin Apr 2019 #13
I was beginning to wonder if that was the plan. If the withholding was intentionally too little.nt Honeycombe8 Apr 2019 #24
Very similar to Dubya's $100-$200 check back in 2001. forgotmylogin Apr 2019 #29
I remember the check. Honeycombe8 Apr 2019 #30
Employers follow what the IRS instructs them! at140 Apr 2019 #19
Yep, my son could not deduct $6000 in student loan interest. sinkingfeeling Apr 2019 #11
That is totally unfair! at140 Apr 2019 #20
Nope, student loan interest is not deductible. sinkingfeeling Apr 2019 #25
Very bad policy! at140 Apr 2019 #27
The student loan deduction is still there. $2,500 cap per return. Honeycombe8 Apr 2019 #31
He prepared using TurboTax. I'll see what his return looks like. sinkingfeeling Apr 2019 #35
You were correct. He was able to deduct t $800 of $6000 in interest payments. sinkingfeeling May 2019 #38
That's not much. Honeycombe8 May 2019 #40
I get so frustrated at such ignorance. PoindexterOglethorpe Apr 2019 #5
The only way to really see dugog55 Apr 2019 #14
It is happening already! CountAllVotes Apr 2019 #17
Good post! In my own case, I got a small tax-cut at140 Apr 2019 #22
Mine went down considerably MichMan Apr 2019 #26
here's one KayF May 2019 #39
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