tax breaks
The Basics—Your biggest tax breaks for 2002 - MSN Money
Student-loan interest. Last year’s tax law increases the 2002 income phase-out ranges for eligibility for the student-loan interest deduction to $50,000 to $65,000 for single taxpayers and to $100,000 to $130,000 for joint returns. It also repeals both the limit on the number of months (it used to be 60 months) during which interest paid on a qualifying loan is deductible and the restriction that voluntary payments of interest are not deductible. You can now get the deduction, no matter how long it takes you to pay off the loan.
Woo hoo - this is great for people like me and E - we have 10 years worth of payments to make each, and every little bit of tax break on them helps - I would have capped out next year with the 60 month rule, and now I have longer to claim it. I like that
Comments
Uhm.. I must be too tired to understand what that snippet said.. but it sounded good. I have another what, 9 years on my loans myself.. Yuck... at $350 a month, that’s harsh.
Posted by: Heather | January 10, 2002 07:41 AM
yeah, between the two of us (E and I), its almost $450 a month. Ouch!
The snippet basically said that you’ll probably continue to get a tax break on the interest of your loan for the full number of years INSTEAD of just based on the first 60 months worth. So since you have 9 years, you’ll have 4 extra years that you will benefit from the tax break
(depending on your income bracket and stuff, but generally, its good!)
Posted by: kristine | January 10, 2002 07:57 AM
i thought i had one more year to claim the interest.. (well actually two).. woohoo!
Posted by: mcvisa | January 10, 2002 02:36 PM