private loan interest deduction

[Matthar924]

I've just completed my first year of payments towards all of my school loans after they entered repayment. However, I have two private loans. As far as I know, I'm just making interest payments and very little, if any money is applied towards principle at this point. Form 1098e on their website reports $5,879.16 as my borrower interest paid, which puts me over the total $2,000 total interest deductioin for student loan interest. I have 3 other student loans (two stafford, one perkins) and I have not checked the 1098's for them yet. I make less than 30k a year and am single.

 

Is it safe to assume that I should simply take the standard 2k deduction for interest paid towards student loans? Or can I deduct all of the private student loan interest, and whatever the total interest for the staffords and perkins combined (which will be less than $500 probably)?

 

TIA

[firelily301]

Hi, the maximum deducation limit for student loan interest is $2,500 (or at least mine was this year) - it's not like regular itemized deducations, if you have over $2,500 in loan interest paid (reglardless of the type of loan) it doesn't matter, the most you get to claim is $2,500. This is dollar-for-dollar off your AGI (I think).

 

My husband had over $3,000 in interest and therefore my piddly little $420 interest deductible is really not beneficial for tax purposes because he takes up the entire amount...