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paigebuchheit
New Member

I refinanced my student loan to a personal loan through my bank. Is the interest I pay still deductible?

 
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MichaelDC
New Member

I refinanced my student loan to a personal loan through my bank. Is the interest I pay still deductible?

Yes, even if you refinance, the interest payments made on your new student loan will still be tax deductible. Either $2,500 or the student loan interest you paid that year, whichever is smaller, is the maximum amount eligible for deduction.

Note: If you refinance your student loan for more than the original loan amount, the additional amount must be used to pay for education expenses such as tuition, room and board, book, supplies and transportation.

Only the Interest portion of your student loan is deductible.

Here's how to  enter student loan interest (Form 1098-E)?

1.       Open (continue) your return in TurboTax if you don't already have it open.

2.       In the search box, search for 1098-E (upper- or lower-case, with or without the dash) and then click the "Jump to" link in the search results.

3.       Answer Yes to the question Did you make any student loan payments?

o    If you land on the Here's what you paid screen, you can either edit an existing payment or add a new one.

4.       Follow the onscreen instructions.



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