Discussion:Student loan interest: accrued vs. paid
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Discussion Forum Index --> Basic Tax Questions --> Student loan interest: accrued vs. paid
Discussion Forum Index --> Tax Questions --> Student loan interest: accrued vs. paid
| 15 December 2008 | |
| From what I've read up the last 30 minutes, you can take a deduction for paid interest. Does that mean interest that accrued throughout the year or the actual figure from your payments that was allocated to interest (and not principal). I think I know the answer, but just want to be sure and not surprised when the 1098 comes in. Thanks. | |
| 15 December 2008 | |
| Your profile says you work for the IRS, so this may be too basic of an answer, but based on the wording of your question, I'd recommend that you start with Publication 970 and see if that addresses your questions. | |
| 16 December 2008 | |
| "From what I've read up the last 30 minutes, you can take a deduction for paid interest"
The operative word here is "paid"taxea | |
| 16 December 2008 | |
| Accrued interest that is added to principal in prior years is deducted by a cash basis taxpayer in the year that it is paid. See Reg ยง 1.221-1(f)(1)(ii). | |
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