2. Student Loan Interest Deduction: A Big Saver for Graduates
What You Need to Know:
The IRS permits you to deduct up to $2,500 in student loan interest if you do not itemize your deductions. This conclusion is accessible for government and private student loans, offering a profitable charge break for later graduates or anybody still paying off their loans. Know More: IRS Tax Guide for Student Loan Interest Deduction
Example: If you pay $3,000 in student loan interest during the year, you can deduct $2,500 from your taxable income, potentially reducing your tax amount.
Also Read to know: Federal Student Aid: Tax Benefits for Education
Tip: Be sure to check the income limitations for this deduction, as it phases out for high earners.
Also Read – Unlocking the Hidden Tax Breaks: Save Big This Year
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