Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
student loan interest
Old 09-16-2010, 05:56 PM   #1
Full time employment: Posting here.
 
Join Date: Mar 2010
Location: Chicago
Posts: 868
student loan interest

I have a heloc which I have used exclusively for college tuition for my son and daughter and therefore I have been writing off the interest on such for up to 2500. This year they will no longer be considered dependents and I no longer will have them as exemptions on my form. I am legally responsible for the repayment of this heloc, can I continue to write the interest off. I looked at Pub 970 and it is kind of vague concerning this. Does anybody know the answer to this question. I would call the IRS but sometimes they don't have the right answer and I don't want to draw any attention?
__________________

__________________
ripper1 is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 09-16-2010, 06:26 PM   #2
Thinks s/he gets paid by the post
 
Join Date: Feb 2008
Location: Indialantic FL
Posts: 1,202
Pub 936 I think addresses this. Your heloc interest is fully deductible if amt of Heloc was less than 100k...if you only have been deducting 2500, you may want to go back and amend your tax returns to claim all of the interest as a deduction.
__________________

__________________
JimnJana
"The four most dangerous words in investing are 'This time it's different.'" - Sir John Templeton
jimnjana is offline   Reply With Quote
Old 09-17-2010, 08:32 AM   #3
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Nov 2007
Posts: 7,533
There is an above the line deduction that allows up to $2500 to be deducted for qualified student loan interest. I was not aware that you could deduct HELOC interest, even if used solely for college tuition, under this $2500 above the line category.

Now, if you are deducting the interest as an itemized deduction, you can probably deduct more than $2500 until the debt is paid.
__________________
Retired in 2013 at age 33. Keeping busy reading, blogging, relaxing, gaming, and enjoying the outdoors with my wife and 3 kids (5, 11, and 12).
FUEGO is offline   Reply With Quote
Old 09-17-2010, 08:52 AM   #4
Thinks s/he gets paid by the post
 
Join Date: Feb 2008
Location: Indialantic FL
Posts: 1,202
Quote:
Originally Posted by FUEGO View Post
There is an above the line deduction that allows up to $2500 to be deducted for qualified student loan interest. I was not aware that you could deduct HELOC interest, even if used solely for college tuition, under this $2500 above the line category.
You can't. If that is what was done, ammended tax returns should be filed to correct prior year tax returns.
__________________
JimnJana
"The four most dangerous words in investing are 'This time it's different.'" - Sir John Templeton
jimnjana is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Student Loan -> Roth Marshac FIRE and Money 3 03-19-2010 09:49 PM
Student Loan Consildation MrTux Other topics 1 06-17-2009 11:25 PM
Pay off 6.375% student loan first? CompoundInterestFan FIRE and Money 8 02-04-2007 10:18 AM
Student Loan Debt Jas2be Young Dreamers 17 08-01-2005 02:06 PM
Student Loan Consolidation haha Other topics 3 11-22-2004 04:28 AM

 

 
All times are GMT -6. The time now is 04:46 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.