How to file a student loan deduction on your taxes.

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February 19th, 2010 - Posted by Tasha

The following post in our Reader Question series is an actual user submitted question:

Q:  I am a single student. What forms do I file to get my student loan deduction?

A: A student loan deduction is a federal tax deduction for qualified student loans.   The specifics of what does and doesn't meet the definition of a "qualified student loan" are spelled out in the Student Loan Interest portion of the Form 1040.  We suggest you look there to see if your situation qualifies you for the deduction.

If you are qualified, The IRS further states that  you can claim the deduction if the following items apply.

1. You paid interest on a qualified student loan in tax year 2009
2. Your filing status is not married filing separately
3. Your modified adjusted gross income is less than $70,000 ($145,000 if filing jointly)
4. You and your spouse, if filing jointly, cannot be claimed as dependents on someone else's return

If you've cleared the hurdle and met all these conditions, can proceed with claiming the deduction on your Form 1040.  You can also refer to Publication 970 for the complete IRS run down on the educational deductions and credits.

It may be that you qualify for additional credits or that other credits will be more financially beneficial to you.   Because everyone's situation is different and it's hard to say what the best strategy is unless you're a tax professional, we recommend using an online tax preparation service to complete and file your tax returns.  TurboTax has the most robust automated deduction tools of any of the providers we reviewed and will walk you through which deductions you may qualify for.   They also guarantee you'll receive the maximum tax refund you can.