Deduct Student Loans After Graduating

[shawnMsrm]

My daughter recently graduated and each year she received a 1098-E and 1098-T. Being she graduated, she will no longer be receiving a 1098-T.

Her Federal loans are coming due so she will need to start paying on those too. Current payments are to Sallie Mae.

Now that she graduated college (no longer in school), will she still receive a 1098-E and can she deduct that on her taxes?

Next year, will she also receive a 1098-E from the Federal loans and will she be able to deduct that amount?

If yes to above, is there a time frame where the loans cannot be deducted?

Thank you.

Shawn

[Mike9241]

1) not deductible to taxpayer who CAN be claimed as a dependent

2) if she marries must file a joint return

3) she must be the one who is legally obligated to repay the loan and actually pays the interest 

4) as long as she meets all 3 conditions above she can deduct the interest every year (laws are subject to change) 

[rjs]

Your daughter will continue to receive a 1098-E every year in most cases. If she meets the requirements that Mike9241 listed she will be able to deduct the interest that she paid, up to the maximum deduction of $2,500, whether or not she actually gets a 1098-E.

The student loan interest deduction phases out at certain income levels. If your daughter (or her spouse, if she marries) starts earning high income, the deduction might be reduced or eliminated. The income limits are adjusted for inflation each year. (The $2,500 maximum deduction is fixed and does not get adjusted for inflation.)

[shawnMsrm]

Thank you both for your feedback. I really appreciate you taking the time.