Can Student Loans Provide Tax Savings - DM 89
- noemedagatan
- Jun 3, 2024
- 2 min read
Can your student loans help save you on taxes? Hey, it's Jon from Financial MD, welcome to today's Didactic Minute.
Now that's a great question because we all want to save money on taxes. We all want to pay less taxes, and it'd be nice if our student loan did something for us right now instead of just taking money out of our pocket. So the big question is, how do we do that? Can you deduct your student loan interest? Now that is a concept and it is a thing and if you're watching this on YouTube or you see this on Twitter or the blog, there will be a link to an IRS tool to determine if your student loan interest is deductible.
Now here's the thing: If I'm talking to you and you're a resident, most likely your student loan interest is deductible; or a fellow, there are income limits; and most of you when you become an attending, you can't deduct that student loan interest, and there are caps on it. So, is it super beneficial? Is this some huge tax loophole that I just told you about? No, but every little bit helps and we got to know about these things to take advantage of what's out there. Remember the tic-tac-toe game? You can win if you know the rules. We're not going to work around the rules. We got to work within them. But if you know all of them, you can begin to take advantage of the things that are out there.
So hope that helps. Put a comment down there if you knew about this already. If you've tried this, if you've done this, if you've struggled with this, reach out to us.
It's Jon from Financial MD, we'll see you next time.
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