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Is there a way to spread student loan interest deductions?

Posted on 2/4/13 at 9:12 am
Posted by TheWiz
Third World, LA
Member since Aug 2007
11665 posts
Posted on 2/4/13 at 9:12 am
With my wife and I having personal loans now, we paid off a very large amount of student loan interest this year. Is there some way to spread this out over a few years, or do we just have to eat it?
Posted by rmc
Truth or Consequences
Member since Sep 2004
26488 posts
Posted on 2/4/13 at 9:13 am to
quote:

do we just have to eat it?


Never heard of taking a deduction as "eating it"
Posted by TheWiz
Third World, LA
Member since Aug 2007
11665 posts
Posted on 2/4/13 at 9:15 am to
I guess I was referring to the fact that you can only deduct so much. I believe $2500/year unless you make X amount, then it is a certain percentage.
Posted by guttata
prairieville
Member since Feb 2006
22504 posts
Posted on 2/4/13 at 9:22 am to
I haven't been able to deduct my student loan interest at all over the last 10 years.
Posted by Ace Midnight
Between sanity and madness
Member since Dec 2006
89476 posts
Posted on 2/4/13 at 9:37 am to
quote:

With my wife and I having personal loans now, we paid off a very large amount of student loan interest this year. Is there some way to spread this out over a few years, or do we just have to eat it?


It's capped anyway. It being capped, I doubt there is any provision in shifting, other than working out an arrangement with your servicer to hold that last payment of the year until January 1st, but you'd just have the same problem the following year.
Posted by Siderophore
Member since Nov 2010
3338 posts
Posted on 2/4/13 at 10:50 am to
You can deduct 2500 a year for up to 5 years after repayment starts.
Posted by Corn Dawg Nation
Member since Oct 2009
3528 posts
Posted on 2/4/13 at 8:05 pm to
quote:

You can deduct 2500 a year for up to 5 years after repayment starts.


The 5 years part is for 2013 when the law reverts back to the old law. 2012 has no time frame limitations.
Posted by cjared036
Houston, tx
Member since Dec 2009
9569 posts
Posted on 2/5/13 at 7:15 am to
Why they don't allow sl deductions for people making over $75k is beyond me...
Posted by Poodlebrain
Way Right of Rex
Member since Jan 2004
19860 posts
Posted on 2/5/13 at 8:08 am to
quote:

Why they don't allow sl deductions for people making over $75k is beyond me...
Why is any student loan interest deductible if the costs of tuition and other educational expenses are not (some are deductible, but not all)? I would think that tuition, the cost of attending school, would get priority as a deduction over interest, the cost of financing attendance.
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