No one likes Tax Time unless they are getting a refund or tax credit of some kind. Many of those with student loans got a scare when they heard that the new Tax plan would include taking away the ability to claim interest paid on their taxes, having to pay taxes on employer tuition assistance and having to start paying taxes on tuition waivers. Fortunately there was enough uproar that those things won’t happen. At least not this time around. Here is what this will mean to you:
- You can deduct up to $2,500 per year on interest paid on your student loans as long as your income does not exceed $80,000 if you are single and $165,000 if married.
- Your employer can contribute $5,250 towards your qualifying continuing education tuition without you having to pay taxes on that money.
- For those who are able to go to school for free because their college has waived the cost, they will still not have to pay taxes on the waived tuition. (CNN Money. Retrieved from http://ift.tt/2CEiopK)
This is great news coming from the administration as these changes would have seriously hurt the over 44 million people who have student loans. Lets hope the administrations in the future continues to respect the need for these benefits. With the default rates rising and the burden of student loan debt out of control those with student loan debt need all the help they can get.
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