Am Currently Graduated?

Q: I graduated college in May 2005; I began paying back my student loans in January 2006. I recieved a 1098 E for the interest I paid towards these loans. upon some reading online I read where the deduction for interest can only be taken if I am currently a student? Is this correct? Am I ineligable to deduct any of my student loan interest since I am currently graduated?

A: - See IRS Publication 970. -It is incorrect. Here are the requirements: - Your filing status is any filing status except married filing separately. - No one else is claiming an exemption for you on his or her tax return. - You are legally obligated to pay interest on a qualified student loan. - You paid interest on a qualified student loan. See IRS Pub 970 for more details. http://www.irs.gov/publications/index.html -You can deduct student loan interest payments (adjustment to income, line 33, Form 1040), as long as you continue to make them -- even if it continues for 10 or 20 years (which is quite common in these days of $30K+ annual tuition). I think your doubt may stem from a confusion of student loan interest with "education" credits (such as Hope or Lifetime Learning) or deductions, which are tied to student status for a 5-month period of the tax year in question.

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