Student loans can be a tremendous burden. But even though you can't escape the payments, there are tax breaks tied to student loans that you can look for when filing your taxes this season. TurboTax expert Lisa Green-Lewis explains that most taxpayers who pay interest on student loans can take a tax deduction for the expense.
"What they need to know is that they are able to deduct interest up to $2,500 that they paid on student loans and it used to be where it was just specific to the students they were able to deduct that," she said. "But now, you know, parents, if you're claiming your student as a dependent, you can deduct that interest on your return."
According to NerdWallet, your parents can list you as a dependent on their tax return if:
- You're 19 years old or younger, you've lived with them for more than half of the year and they've provided more than half of your financial support
- You're 24 years old or younger and a full-time student
- You're permanently and totally disabled
For more on last minute tax deductions you're not taking advantage of, catch our full webinar with TurboTax here.
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