Student Loan Interest Deduction

If you are repaying student loans, you can deduct up to $2,500 of student loan interest paid during the year. You will receive Form 1098-E (Student Loan Interest Statement) in the mail from the loan company showing the amount of interest you paid on your eligible student loans during the previous tax year.

Note that if your adjusted gross income on your tax return is $80,000 or more if single, head of household, or qualifying widow(er), or $160,000 or more if married filing jointly, you cannot take this deduction. If you file as married filing separately, you cannot deduct any student loan interest, regardless of your income. In addition, if you are a dependent for whom someone else claims an exemption for you on a tax return, you may not deduct your student loan interest.

If interest was not paid for the year (for example, because the loans were in deferment or forbearance), you cannot take this deduction, despite the fact that interest may continue to accrue during the deferment or forbearance period. You can only deduct interest that was paid.

REPORT NAME CHANGES TO SOCIAL SECURITY BEFORE FILING TAXES

All of the names on a tax return must match Social Security Administration records. A name mismatch can delay a tax refund.

Taxpayers should notify the Social Security Administration of a name change for anyone on their tax return, including:

● recently married taxpayers who now use their spouse’s last name or a hyphenated name. ● a dependent who is an adopted child and now has a new last name.

Taxpayers who have a name change should get a new card that reflects the name change. File Form SS-5, Application for a Social Security Card, found at https://www.ssa.gov/forms/ss-5.pdf

IRS Phone Scam Intensifies During Filing Season

As taxpayers are working to file their taxes, criminals are also hard at work — attempting to steal their money. While there are several versions of tax scams, the classic telephone con continues to thrive, especially during filing season. As a reminder, here’s how the scam works:

● Scammers call taxpayers telling them they owe taxes and face arrest if they don’t pay. Sometimes, the first call is a recording, asking taxpayers to call back to clear up a tax matter or face arrest. ● When taxpayers call back, the scammers often use threatening and hostile language. The thief claims the taxpayers may pay their debts using a gift card, other pre-paid cards or wire transfers. ● Taxpayers who comply lose their money to the scammers.

Taxpayers should remember that the IRS:

● does not call taxpayers demanding immediate payment using a specific payment method. The IRS will first mail a bill. ● does not threaten to have taxpayers arrested for not paying taxes. ● does not demand payment without giving taxpayers an opportunity to question or appeal the amount the IRS believes they owe. ● does not ask for credit or debit card numbers over the phone.

Taxpayers who receive these phone calls should hang up the phone immediately, without providing any information. Report these calls to the IRS (using the IRS Impersonation Scam Reporting form, https://www.treasury.gov/tigta/contact_report_scam.shtml or by calling 800-366-4484) as well as the Federal Trade Commission (using the FTC Complaint Assistant on FTC.gov).