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Lev, Tax Advisor
Category: Tax
Satisfied Customers: 28081
Experience:  Taxes, Immigration, Labor Relations
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I have a student loan of aoubt $82,000. I can pay a lump ...

Resolved Question:

I have a student loan of aoubt $82,000. I can pay a lump sum of about 60,000. I think I can deduct $2500 in interest this year, but if I pay the $60,000, can the interest deductions carry over for future years?
Submitted: 8 years ago.
Category: Tax
Expert:  Lev replied 8 years ago.

You may deduct only the student loan interest that you actually paid. The actual amount of student loan interest should be reported to you on the form 1098E - -you may not deduct mor e interest that you actually paid - if you do - the IRS will likely notice discrepancy and would ask you for explanation.

for details on student loan interest deduction - please refer to the IRS publication 970 - - page 25

If your student loan interest amount is more than $2500 - you may not carry over the difference to the next year - that deduction would be lost.

In additional, the amount you may deduct may be phased out or eliminated based on your filing MAGI. if your modified adjusted gross income (MAGI) is between $55,000 and $70,000 ($110,000 and $140,000 if you file a joint return). If your MAGI is above the range of incomes - you cannot take a student loan interest deduction.

Lev and other Tax Specialists are ready to help you
Customer: replied 8 years ago.
Reply to LEV's Post: I think the interest will be more than $2500. How much can I take if my MAGI is below those levels?

Expert:  Lev replied 8 years ago.

You will deduct $2500 - student loan interest above that amount is not deductible.

That limit stays for long time - it is possible that it will be increased.