Financial News & Information. » United States

Can student loan interest be an itemized deduction on your taxes?

admin — Mon, 02 Mar 2009 08:07:00 +0000

msphenom83 asked:

The Student Loan Deduction allows you to deduct up to $2500. In 2007 I paid well over $2500 in interest and obviously want to take advantage of this.

Can student loan interest be used as a tax deduction if the loans are in deferment/forbearance?

admin — Tue, 24 Feb 2009 08:16:56 +0000

AG asked:

I know that student loan interest can be deducted.

My student loans are all either in deferment or forbearance. I’m accruing interest on some of them, but I haven’t actually paid any interest yet. Can I deduct the interest that accrued?

Thanks!

Is a loss from a personal loan the same tax category as a loss from stock investments?

admin — Sun, 15 Feb 2009 10:55:28 +0000

Jan R asked:

I loaned a friend some money several years ago to help start a business, and the business failed and I was not repaid for the loan. I also, the same year, had losses from other investments (in the stock market). My understanding is that I can only deduct $3000 in investment losses for that year. Is the personal loan in the same category as the other investments — in other words, does it count as part of the $3000 limit? Or is there a way I can claim that loss separately? Thanks!