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Education Loan Examples. Reporting Deduction in your Taxation Return

Examples where in fact the Phase-out guidelines never use:

Solitary taxpayer with federal modified AGI of $48,000 Undergraduate interest of $2,900

Because this taxpayer that is single federal modified AGI try $50,000 or less, they can subtract interest the following:

Allowable 1040, Line 33 -$2,500, the utmost blended graduate and undergraduate interest compensated deduction allowed

Allowable Schedule Y, Line 10 deduction that is federal $2,500 , the most federal deduction for combined undergraduate and graduate interest compensated ended up being an allowable Massachusetts deduction
Allowable Schedule Y, Line 12 Massachusetts deduction – $400, undergraduate interest perhaps not advertised as a federal deduction is an allowable Massachusetts deduction
Instead Schedule that is,allowable Y Line 12 Massachusetts deduction – $2,900 since most of the interest is actually for undergraduate and in case it’s clear that taxpayer does not be eligible for No taxation reputation of Limited money Credit

Hitched filing joint taxpayer with federal “modified AGI” of $103,000.

Graduate interest $1,700 Undergraduate interest $1,500 Total education loan interest $3,200

Since taxpayers’ federal modified AGI try $105,000 or less, they could subtract interest the following:

Allowable 1040, Line 33 -$2,500, the most blended graduate and undergraduate interest compensated deduction permitted

Allowable Schedule Y, Line 10 deduction that is federal $2,500 , the utmost federal deduction for combined undergraduate and graduate interest compensated is an allowable Massachusetts deduction
Allowable Schedule Y, Line 12 Massachusetts deduction – $700, undergraduate interest maybe maybe maybe not stated as a federal deduction, is an allowable Massachusetts deduction
Instead, routine Y, Line 10 – $1,700 and Line 12, $1,500 if it’s clear that taxpayer does qualify for No nвЂ™t taxation Status of Limited earnings Credit