Student loan interest deductable?
My wife just recently graduated from graduate school with a
master's degree. After 6 years of college full time, and 4 years of
college full time for me, we now owe over $50,000 in student loans. (We
paid for every penny ourselves without financial help from parents.)
As I am a Canadian citizen, but a permanent resident of the US, all
my loans were through the Canadian government, and I pay back directly
to them.
My wife, a US citizen, owes 7 different banks money. We're not
interested in loan consolodation, because don't want to extend the
terms.
We both make good money, and payed about $8,500 in fed tax in 1995.
We have no house, no kids, no deductions. (We can still sneak in on
the 1040EZ). Is there anything we can do to lower our liability? Can
I file a Canadian tax return and try to get some of my interest back?
Can I deduct Student loan interest (I used to be able to in Canada)?
Please help, its very frustrating starting out with a huge debt load
and trying to afford to buy a house, and being new to the US I'm not
that familiar with the tax code.
Thanks in advance for your time and effort!
-Unfortunately, student loan interest isn't deductible now. The tax bill
that is stalled in budget negotiations included such a deduction. Whether
it will become law, or when, is anybody's guess. So for now it's the
1040-EZ for you and a real cas