Can I deduct student loans on my taxes?

In California, it depends on the type of student loan and the tax year in which you are filing your taxes. Federal student loans are not deductible on your taxes in California. However, if you have a private student loan taken out after December 31, 2017, you may be eligible to deduct up to $2,500 of the loan interest you paid during the tax year. The deduction is an above-the-line deduction, so there is no need to itemize your taxes. Additionally, if you are at least partially liable for a student loan taken out by your parents or another relative, you can deduct the interest payments from your taxes in California. To qualify for the deduction, the loan must have been used to pay for qualified eligible educational expenses, such as tuition, fees, books, and supplies. Finally, if you are currently making student loan payments, you may be eligible for a California student loan interest deduction of up to $2,500 each year. To qualify, your modified adjusted gross income must not exceed certain limits. Overall, whether you are able to deduct student loans on your taxes in California will depend on the type of loan, when it was taken out, and your income level. It is important to speak with a tax professional to make sure you are taking advantage of any deductions you qualify for.

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