How do states use Student Loan Annual Interest?
In this example, I am a former student, with an annual student loan interest payment of
of $10. The student loan principal is not a part of this example. My example AGI is $100. On my example 1040 form, my student loan annual interest of $10, has the effect of lowering my AGI from $110, to $100.
Example 1099E
$10
Example 1040
$100
My question is not about my state tax return. My question is about a state
form that is not tax related.
My state is asking me my AGI, and on a separate box, my student loan annual interest.
The answer to their question is the same as above.
Example 1099E
$10
Example 1040
$100
The state form implies that it may use this to reduce their calculation of my income
to $90.
Does my state want to double count my student loan annual interest? If I reply with $10
on the state form, then my $10 is counted on the 1040 form to reduce my tax liability, and again on the state form, for a total of $20?
I don't know why or how the state is going to use my studen loan annual interest number in their algorithm.
