Student loan and tax situation

Jan 20, 2006 2 Replies

My friend has a student loan of about 3,000pa. She does some part-time work on a self-employed basis.



When calculating her tax liability, do you add the X she earns from self-employed work to the 3,000pa she gets as a student loan? Or because it is a student loan does she just get taxed as though her income is Xpa?



Jon


The latter, of course. A loan is not income.

Except a loan can be treated as income for benefit purposes. IIRC the WFTC used to treat a student loan as income.

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