We all know that the road to being an airline pilot or commercial pilot isn’t the easiest. You have to take out student loans in order to afford flight school. But did you know that when it comes to the interest on your student loans, you may be eligible for a tax deduction or credit? If you didn’t, you’ve come to the right place to figure out how to get started! Rest assured, this will save you time and money!
Student Loan Interest Tax Deductions
It is practically written in the law! According to IRS Publication 970 or the Tax Benefits for Education that taxes can generally be reduced up to $2,500 if the following events have taken place or if you’ve done the following:
● Your student loan was used to pay for your qualified education expenses. The loan didn’t come from a relative nor was it created under a qualified employer plan.
● You, your spouse, or your dependent was the sole beneficiary of the student loan.
● The program that you, your spouse, or your dependent enrolled in is at least half-time in a program that will eventually lead to a certificate, degree, or other recognized educational credential at an eligible institution.
● The modified, adjusted gross income under your name or MAGI, for short, does not exceed more than $85,000 when filed as single, head of household, or qualifying widow(er) or no more than $170,000 if married filing a joint return.
To become one of the best pilots in the world, you need all the details when it comes to student loans. Let’s face it – not everybody has the funds in the world to pay the tuition without a little help. If you want to learn more about full eligibility requirements to get a deduction on your student loans, check out Tax Benefits for Education or consult with a tax specialist.
What Is The Form You Need For Student Loan Deductions?
Interest rates on your private student loans can be a massive headache, especially when you’re planning on closing your Stratus student loans soon. But we can get you started on the right documentation ASAP! Call us at (855) 301-3335.
Form 1098-E: Student Loan Interest Statement
This form is basically for the borrower or student. It provides a certain amount of interest paid on an eligible student loan(s) during the calendar year. The cosigners, on the other hand, will not receive this specific form. Instead they will only receive a tax information later.
What About Tax Information for Cosigners?
For the cosigners on Stratus student loans, they will be notified by our underwriting team of the total amount of interest paid on eligible loans. They won’t necessarily be notified regarding the interest the cosigner themselves have paid. Please be aware that when it comes to the applicable tax forms, only the borrowers of the loan(s) are eligible to receive them. If you wish or require that specific form, it’s imperative to reach out to the borrower.
How Do You Access Tax Information?
Need more information?
We’ll leave the tax advice to the professionals but if you need some resources for more information, check out these pages:
Visit IRS.gov or contact 800-829-1040.
Check out IRS Pub 970 aka Tax Benefits for Education.
Review the Student Loan Interest Deduction Worksheet in the 1040 or 1040A instructions.