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Old 02-10-2019, 04:39 PM
 
5,675 posts, read 2,575,431 times
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Quote:
Originally Posted by citidata18 View Post
Yes, it was.
You got caught saying something silly about a topic that you donít understand. Doubling down on that isnít going to improve your position.
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Old 02-11-2019, 11:58 AM
 
4,588 posts, read 10,056,377 times
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Thanks for the links, but I donít see any maximum MAGI numbers.



Quote:
Originally Posted by cornsnicker3 View Post
IRS allows up to $2500 in student loan interest deduction for qualified filers.

https://www.irs.gov/taxtopics/tc456

Your student loan servicer should release a 1098-E form that reports the total amount of interest paid.

https://www.irs.gov/forms-pubs/about-form-1098-e

The IRS does not allow for actual student loan payment deduction. Only some states (e.g. Minnesota) allow such deduction.
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Old 02-11-2019, 04:54 PM
 
Location: Boston
5,989 posts, read 1,771,113 times
Reputation: 4402
Quote:
Originally Posted by TaxPhd View Post
Roll your eyes, but the distinction is very important. The IRS can accept and process your return, and then two years later, perform an audit and assess significant taxes, penalties, and interest on that return.

Filing a return and not receiving a notification of audit means nothing. It certainly doesn’t mean that the return has been “approved” or that you won’t face an audit in the future. In fact, NO conclusion can be drawn about whether or not you will face a future audit, or whether the return is “correct.”
Excellent point, people submit their tax return, get their refund and think they're in the clear. Doesn't work that way. IRS contacted me with a bill for a tax return error I made 2 tax seasons ago.
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Old 02-11-2019, 04:57 PM
 
Location: Boston
5,989 posts, read 1,771,113 times
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Quote:
Originally Posted by citidata18 View Post
It's an informal online forum where an average joe simply asked a question and was given an answer where the point being made was clear (even by you).

It's unfortunate that you like to get stuck on technicalities (username definitely checks out). But have fun at it, because I'm not going down that rabbit hole with you.
There are plenty of topics here on City-Data, find one you know something about and contribute.
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Old 02-11-2019, 09:53 PM
DKM
 
Location: Thousand Oaks, CA
2,352 posts, read 804,042 times
Reputation: 2415
Quote:
Originally Posted by citidata18 View Post
Yes.

You can also still deduct Student Loan Interest. This item just no longer shows up as a line on your 1040. You would instead have to file a Schedule 1 form in addition.

I did the exact same thing and the IRS approved my return, no issues.
You didn't file a return deducting tuition and fees for 2018 because the forms don't allow it (yet).
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Old Yesterday, 02:06 AM
 
1,588 posts, read 640,614 times
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Quote:
Originally Posted by DKM View Post
You didn't file a return deducting tuition and fees for 2018 because the forms don't allow it (yet).
Just to clarify, I did not deduct tuition and fees on my return, only student loan interest which is completely separate.

But it is technically true that "tax extenders" have not yet been renewed by Congress. The TCJA allows for congress to consider these provisions every year for extension and these above the line deductions are cleared retroactively (in 2017, they weren't renewed until 2/9/18). However, Congress has almost never *not* renewed them yet over the past decade. It would be highly unusual for them to not do so this year. A bill has even been presented in the Ways and Means Committee.

https://legiscan.com/US/bill/HB1071/2019

Each circumstance is different, but if you're already expecting a significant refund without the deductions, I wouldn't recommend sitting around twiddling one's thumbs. The IRS will still "accept and process" your return and the earlier, the better. This is especially with the uncertainty ongoing right now as far as another possible Government Shutdown.

Then, worst case, you would just have to file an amended return to claim the above the line deductions.

So the short answer is still yes, as the TCJA did not eliminate them, but with this caveat. It's only becoming more uncertain recently because of the chaotic administration in Washington.

Last edited by citidata18; Yesterday at 02:54 AM..
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Old Today, 08:51 PM
 
19,100 posts, read 12,514,080 times
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Quote:
Originally Posted by DKM View Post
You didn't file a return deducting tuition and fees for 2018 because the forms don't allow it (yet).
Deduction of college tuition/fees along with a few others (such as exemption from taxation of mortgage forgiveness) must be done by a process called "extender" which Congress hasn't gotten around to doing.


https://www.cnbc.com/2019/02/06/cong...-for-2018.html


Meant to be temporary these tax "breaks" require annual reauthorization due to the wink and nod way our government runs.


Not making such deductions permanent part of tax code avoids all sort of unpleasant and unwanted attention such as scoring by the CBO. Most if not all the deductions up for extension were first enacted during the Obama administration to cope with (then) poor economic climate (deep recession).


There are those in Congress who opposed then and still do now these so called "temporary" adjustments to tax code. And with good reason; once something is enacted is it very difficult to take that punch bowl away. So what should have been phased out, never is and the thing or things continue to be renewed via extenders all but becoming a de facto part of tax code. Their costs to the treasury and on budget aren't accurately reflected due to their supposed temporary nature.
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