Student Loan Interest Deduction 2012

Q: Will there be a student loan interest deduction 2012 for filing taxes? If so, how much student loan interest can be deducted?

A: For a student loan deduction on your 2012 taxes, you will have to qualify for the deduction. For current, up to date information you will want to visit the IRS website, but below is a general overview on student loan interest deduction:

Student loan interest deduction 2012 forms:
If you’ve paid more than $600 on a qualified student loan, will send you a Form 1098-E – Student Loan Interest Statement. Exact calculations for student loan interest deductions and the associated income tax forms can be found on the IRS website. If you use a tax preparation software, it should guide you through student loan tax deduction if you qualify.

Student loan interest deduction 2012 qualifications:
Qualifying taxpayers can take up to a maximum of $2,500 deduction on their taxes for student loan interest payments. In order to qualify for a student loan tax deduction, the student loan must have been taken out for only paying qualified education expenses, and the interest payment can not have been made by a related person or come from a qualified employer plan. The student loan must be for you, your spouse or a person you claim as a dependent.

The limit or maximum on student loan interest deduction 2012 taxes is $2,500. There is also is phase out schedule for the deduction based on your modified adjusted gross income or AGI. The phase out starts when your AGI is over $60,000 (or $120,000 married filing jointly) and the phase out ends when your AGI is over $75,000 (or $150,000 married filing jointly). The information provided is purely informative. Please speak to a tax professional or visit the IRS website for any questions.