The Tax Questions Blog

Posts Tagged ‘are student loans taxable income’

Question: Does my income affect my FAFSA?

My parent's taxable income is only $5,000.00
My income is $28,000.00
I'm 19 years old and wanting to go back to school. I'm still considered a dependent student.

Here's my questions...

I filled out a FAFSA application when I wasn't making money and my EFC (estimated family contribution) was 0. Technically my EFC hasn't changed. Is the FAFSA completely based on my EFC or will income decide the amount I can get for grants, loans, etc??? Or does my income somehow effect my Estimated Family Contribution?

Thanks for the help!

Answer: Your income decides your EFC.

The reason why it hasn't changed is because you are still considered a low income family since your parents aren't making money, and your income is still below poverty level when you add your family members.

However, once you turn 24, if you don't have any children or dependents, with 28k, your efc probably going to be up in the 8 or 9 thousands and you won't qualify for pell.

It's Never Too Early To Start Saving

The earlier you begin investing, the more stable your future will be in the short and long term.

Question: Should I file an income tax?

I'm a grad student right now, have no income and only have student loans through the government. There is nothing taxable that I have done in the last year. Is there any reason/benefit for me to file income taxes?

Answer: Last year stimulus required filing. You can follow the questionnaire on IRS site to determine if you need to file:

http://www.irs.gov/individuals/students/index.html

Good News: More Money Available in Education Tax Credits and Deductions

RESTON, Va.----As tax deadlines approach, college students and their parents take note: new tax rules may help you keep more money in your pocket. Taxpayers who paid college tuition or interest on student loans for themselves or their children should ensure they are taking advantage of tax savings, says Sallie Mae, the nation’s leading saving, planning and paying for education company.

Tax Tips & Information : About Tax Deductions for College

Question: Why am I getting so much less this year Part 2?

ok, so I dont know how to reply to these after an answer.
last years return (2006) my gross income was $28,850, and $0 on Standard Deductions, Exemptions, and Taxable Income. I claimed $1500 or so in student loan interest paid.

This year (2007 return) I have 2 jobs instead of one, with a total gross income of $42,452. The fed tax withheld is $4,506.01, SS withheld $2,632, and Med withheld is $615. These are all totals from both W2s together.
I paid 1420.22 in student loan interest this year.

2007 Standard Deduction $5,350
07 Exemptions $3,400
07 Taxable Income $32,281

why were the above all $0s for '06, but not now? heh, Did I go into some other bracket that screws up my ability to get money back? My refund over the past 4 years has been between 700-800$, but this year inputting the same info I seemingly get a grand total of $13.
what else should I post numbers-wise? Is there anyone who has a possible answer as to why I'm getting so much less bak?

Answer: If those are actually your numbers from your '06 return, it sounds like there was a serious mistake made.

Just think about it for a minute. You earned $28,850. You then claimed zero in deductions (when you really should have claimed the standard deduction, but that's beside the point right now) and zero in exemptions (when, again, you should have claimed at least yourself, so that would have been even more to deduct from your income before you calculated your tax)

Anyway -- if you deducted NO deductions from your income, then your taxable income should still have been $28,850! The fact that you reported NO taxable income, in my opinion, means your taxes were not done properly.

I'll be interested to see if anyone else has another possible explanation. I hope for your sake that it turns out I'm wrong.

Harvard Borrowing $400M for Smaller Expansion

Harvard University, which has almost doubled its debt burden in three years, begins selling about $400 million of tax-exempt bonds today as it finances part of a scaled-back campus expansion plan.

Question: Are student loans considered income for taxes?

My college advisor told me that since I'm not working, I need to put my student loans down as non-taxable income in order to qualify for student loans on my own (I am an adult). I've never heard of this and I can't find any info on it. Before I go to a tax pro, thought I'd see what you all have to say.

Answer: I think your advisor is on crack

Krieger, Kruse paint bleak pictures of Measures 66 & 67

State Representative Wayne Krieger (R-Gold Beach) and State Senator Jeff Kruse (R-Roseburg) held a town hall meeting yesterday before a sympathetic audience opposed to Measures 66 and 67.