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Old 03-20-2010, 01:28 PM
 
1 posts, read 1,635 times
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I understand the limitations of claiming student loan interest on my federal taxes...
However, is there a "loophole", that will allow my wife and I to claim our 2009 student loan interest despite that we, jointly, make more than $150,000 AGI?

Thank you, in advance
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Old 03-23-2010, 07:48 AM
 
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Not really. If one of you makes less than the individual phaseout, you could try filing separately. However, you lose some other tax breaks that way. The phaseout is there for a reason, and it's pretty black and white that if your make more than the phaseout, claiming the deduction will result in an automatic adjustment by the IRS in best case scenario and potential tax penalties and/or full scale audit in the worse case (ie, what else are you trying to get away with?).
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Old 07-20-2010, 06:23 PM
 
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Quote:
Originally Posted by Mike From NIU View Post
Not really. If one of you makes less than the individual phaseout, you could try filing separately. However, you lose some other tax breaks that way. The phaseout is there for a reason, and it's pretty black and white that if your make more than the phaseout, claiming the deduction will result in an automatic adjustment by the IRS in best case scenario and potential tax penalties and/or full scale audit in the worse case (ie, what else are you trying to get away with?).
Unfortunately, this option won't work either. In order to claim the student loan deduction, you must file jointly if you are married. Filing as "married, filing separately" automatically knocks you out of eligibility for this deduction, even if you were under the income threshold.

It's too bad that Congress won't lift those income thresholds a bit higher, esp for individuals with extremely high debts.
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Old 07-21-2010, 01:17 AM
 
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First, locate the student loans used to pay for all your higher education expenses, which can include tuition, fees, cost of books, room and board, and transportation fees.
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Old 07-21-2010, 07:27 AM
 
12,017 posts, read 14,220,832 times
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yeah it's ridiculous how low those AGI limits are for student loan interest. You'd think we'd want to encourage education a bit more (especially expensive grad school).
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