Are there any tax credits or deductions for student loan payments?

In Tennessee, there are no specific tax credits or deductions for student loan payments. However, there are some federal tax credits and deductions that may be available to some Tennessee residents who are making student loan payments. For instance, the American opportunity tax credit (AOTC) is a federal credit available to taxpayers who will be claiming a dependent student on their tax return. This credit is for up to $2,500 per eligible student and is available for up to four years of post-secondary education. To be eligible for this credit, the student must be enrolled at least half-time in a degree program and must meet certain income requirements. In addition, in Tennessee, parents who itemize deductions on their tax return can deduct up to $2,500 of the interest paid on student loans for their dependent. This deduction can be taken for the first five years of interest payment. Finally, Tennessee residents can also qualify for the Lifetime Learning Credit, which is a federal credit that provides up to $2,000 per individual for tuition and fees related to post-secondary education. To be eligible for this credit, the student must be an undergraduate with fewer than five years of college experience and must meet income requirements. In general, although there are no specific tax credits or deductions available for student loan payments in Tennessee, there are some federal tax credits and deductions available that some residents may qualify for.

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