More on Taxes

It’s tax time so I’ve got another tip to add to this morning’s. Another tip from Jenkins Law Library – this time from RayAna who points us to a great article on Yahoo! Finance about overlooked tax deductions. One example:

4. Student loan interest paid by Mom and Dad. Until recently, if parents paid back a student loan incurred by their children, no one got a tax break. To get a deduction, the law held that you had to be both liable for the debt and actually pay it yourself. But now there’s an exception. If Mom and Dad pay back the loan, IRS treats it as though they gave the money to their child, who then paid the debt. So, a child who’s not claimed as a dependent can qualify to deduct up to $2,500 of student loan interest paid by mom and dad.

Bet my parents wish that was in place while I was in college. Check out the list because you may qualify for more money than you realized.

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