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Student loans deductions

For part of last year, I was a full time graduate student while my husband was a full time worker. To help with tuition and the bills, I used some student loans to pay for my education and part of the bills.

In my student statements, part of the total tuition charges included a check, which is a portion of my student loans, for my personal expenses (partly related to school i.e. bills, books, etc.). Do I include or exclude this from my calculations for education deductions?

Thank you!

Reply to
Sallymae
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"Sallymae" wrote

Any and all education deductions are based on how much you ~~paid~~ for the education. So your personal expenses don't play into the credits. The school should have sent a 1098T that reports your qualified educational expenses. It will not be inclusive of your personal expenses.

Reply to
Paul Thomas, CPA

Generally, only tuition is deductible, although books may be if they are required for enrollment and paid to the school. Note that medical expenses still don't qualify.

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expenses. Student-activity fees and expenses for course-related books, supplies, and equipment are included in qualifiededucation expenses only if the fees and expenses must be paid to theinstitution as a condition of enrollment or attendance. You should also consider the Lifetime credit, which gives you up to $2,000. By contrast, the student loan deduction may be worth a maximum of about 28% of 4000, or $1,120. Your software or tax preparer shouild tell you the best route as well as the exact numbers, and the effect on state tax.

Reply to
removeps-groups

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