Student Loan Interest Deduction, ALABAMA'S #1 TAX SERVICE

Generally, personal interest you pay, other than certain mortgage interest, is not deductible on your tax return. However, if your modified adjusted gross income (MAGI) is less than $75,000 ($150,000 if filing a joint return), there is a special deduction allowed for paying interest on a student loan (also known as an education loan) used for higher education. Student loan interest is interest you paid during the year on a qualified student loan. It includes both required and voluntary interest payments.
For most taxpayers, MAGI is the adjusted gross income as figured on their federal income tax return before subtracting any deduction for student loan interest. This deduction can reduce the amount of your income subject to tax by up to $2,500.

The student loan interest deduction is taken as an adjustment to income. This means you can claim this deduction even if you do not itemize deductions on Form 1040's Schedule A.
Qualified Student Loan
This is a loan you took out solely to pay qualified education expenses (defined later) that were:

• For you, your spouse, or a person who was your dependent when you took out the loan.
• Paid or incurred within a reasonable period of time before or after you took out the loan.
• For education provided during an academic period for an eligible student.

Loans from the following sources are not qualified student loans:

• A related person.
• A qualified employer plan.

MOORE'S SERVICE, LLC

2160 Green Springs Hwy, S. Suite E. 

Brimingham, AL 35205

&

708 8^TH Ave. N. (Rev. Abraham Woods Blvd.) 

Phone: (205) 324-8753

Email: mooresservices1@gmail.com

Website: www.mooresservicesonline.com

Blog: www.mooresservices.blogspot.com

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