|Yes, Chandler, really. Via.|
NOPE. A little googling led me to the IRS site that explains you can only take a maximum of $2,500 in deductions for student loan interest during any given tax year. Seriously? Grrr. I've been paying more on my loans in the hope of getting rid of my debt only to find out that the tax benefit has its limits. I wouldn't change my approach, however. I still want that debt gone. It just sucks a bit that I don't get more of a benefit.
Lesson learned for next year: don't expect a bigger deduction than $2,500 for student loan interest.
In other tax news, I owe the federal government $132, but the District of Columbia owes me $103. So net loss this tax season = $29. Not bad! Quite the change from the past few years where I have received $500-1,000 back from the IRS. But hey, at least this year I didn't let them have any of my money interest-free!