What are the tax benefits of student loan repayment?

In Wisconsin, student loan borrowers may be eligible to claim tax benefits on student loan payments. The student loan interest deduction can be used to lower taxable income, as the federal government allows borrowers to deduct up to $2,500 of student loan interest expenses from their total income for the year. Additionally, Wisconsin state tax law allows for an additional deduction of interest payments against their state income taxes. Another tax advantage for student loan borrowers is loan forgiveness. In some cases, a portion of a student loan balance is forgiven after the borrower makes a certain number of payments. In Wisconsin, any amount of loan forgiven is not considered to be taxable income to the borrower, meaning that the borrower does not need to pay taxes on the amount that is forgiven. Finally, student loan borrowers may be eligible to claim a Wisconsin tuition and fees deduction. This deduction can be used to lower the amount of a student loan borrower’s Wisconsin taxable income. In order to be eligible, the borrower must have lived in Wisconsin for the entire taxable year and must have paid tuition and fees to an eligible educational institution. In summary, student loan borrowers in Wisconsin may be able to benefit from a variety of tax benefits, such as the student loan interest deduction, loan forgiveness, and tuition and fees deduction. By taking advantage of these tax benefits, borrowers can save money on their student loan payments.

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What are the tax benefits of student loan repayment?

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