Credit card interest payments: tax deductible?

[yerfdog]

Originally Posted by FidelCashflow

You don't get tuition credits in America?

Yeah, you do get tuition credits, I've taken them a lot in past years. They aren't applicable in all circumstances though. whusurdadi might want to skim thru http://www.irs.gov/publications/p970/index.html

 

[randallr]

Originally Posted by whusurdadi

I've been trying to get my accountant to take my wife's tuition off - he's like "uhhhhhhhhhhhh, no."

You probably exceed the level of income where it's even deductible.

 

[dfagdfsh]

there are tuition deductions but they depend a lot on the total value/the income/how old you are, etc and its capped pretty low

 

[randallr]

Originally Posted by FidelCashflow

You don't get tuition credits in America?

Originally Posted by RedLantern

There is a deduction for interest on student loan payments, but it is capped pretty low, and it has income phaseout provisions that kick in pretty early. Also, IIRC, it is very hard to get tuition treated as a business expense.

It is deductible(they give you either a live long learning credit or a hope one). However, high AGI tax payers always have this phased out.

 

[yerfdog]

Originally Posted by randallr

However, high AGI tax payers always have this phased out.

yeah, i woudl guess this is why whusurdadi can't do it. obviously it's not an issue for most full-time students

 

[Charley]

Originally Posted by yerfdog

yeah, i woudl guess this is why whusurdadi can't do it. obviously it's not an issue for most full-time students

I doubt that many full time students make enough to have to pay income taxes. Sure, they pay FICA. But I don't believe the credit goes against that.

What you will find with most of this credit and special deduction business is that they screwed you again. If you make enough to use it, it is phasing out on you. Most do not carry foreward either. What does not get melted away by a phase out gets taken away with the AMT. It really is a version of fraud the way the pols sell it as a benefit. It is available, just no one can use it.

An, yes, in the past all interest was deductible. It is really pretty lousey that I have to pay taxes on interest I earn, but cannot deduct interest I pay. At least I should be able to offset the paid out against the earned interest.