Tuition and Fees Deduction Has Been Extended Through Tax Year 2007
RESTON, Va., Feb. 28 /PRNewswire-USNewswire/ -- According to the
College Board, 6.5 million taxpayers claimed about $3.8 billion in
deductions for interest paid on student loans, generating between $500 and
$700 million in tax savings in 2004. Sallie Mae, the nation's leading
saving- and paying-for- college company, advises taxpayers to study up on
easy education-related tax deductions and credits this tax season. Applying
these education benefits to tax returns can yield a return on your college
investment and significantly reduce the amount you owe in taxes.
There are two education-related tax credits and two deductions
available through the Federal government. A tax credit reduces the amount
of tax you owe dollar-for-dollar, while a tax deduction reduces the amount
of income on which your tax is calculated.
* The Hope Scholarship Tax Credit provides up to a $1,650 tax credit per
eligible student each year. This credit can only be claimed for college
freshmen or sophomores.
* The Lifetime Learning Tax Credit provides a tax credit of up to $2,000
per family for anyone in college. This may be used for any student in
any year of college, graduate school or continuing education.
* The Tuition and Fees Tax Deduction has been extended through 2007 and
can reduce taxpayers' taxable income by as much as $4,000 for tuition
expenses and related fees.
* The Student Loan Interest Tax Deduction can save student loan borrowers
up to $2,500 when they claim their student loan interest paid during
2006.
"Education-related tax deductions and credits can add up to real money
and put those dollars back in your pocket," said Martha Holler,
spokesperson for Sallie Mae. "Students, parents and student loan borrowers
should take the time and educate themselves on these tax benefits to make
sure no money is left on the table."
Although there are some restrictions on how these benefits can be taken
in combination, it is important to remember that the student loan interest
deduction can be taken with any other education-related benefit. Sallie
Mae's College Answer Web site has additional tools and information on these
valuable tax benefits. Visit http://www.CollegeAnswer.com for more
information.
In addition, taxpayers can call the Internal Revenue Service (IRS) help
number at 800/829-1040, or read IRS Publication 970, "Tax Benefits for
Higher Education," available at the IRS Web site at http://www.irs.gov.
SLM Corporation (NYSE: SLM), commonly known as Sallie Mae, is the
nation's leading provider of saving- and paying-for-college programs. The
company manages $142 billion in education loans and serves nearly 10
million student and parent customers. Through its Upromise affiliates, the
company also manages $15 billion in 529 college-savings plans, and assists
more than 7.5 million members with automatic savings through rebates on
everyday purchases. Sallie Mae and its subsidiaries offer debt management
services as well as business and technical products to a range of business
clients, including higher education institutions, student loan guarantors,
and state and federal agencies. More information is available at
http://www.salliemae.com. SLM Corporation and its subsidiaries are not
sponsored by or agencies of the United States of America.
SOURCE Sallie Mae
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Related links:
http://www.salliemae.com
http://www.CollegeAnswer.com
http://www.prnewswire.com/comp/827187.html/
CONTACT:
Beth Guerard of Sallie Mae, +1-703-984-5621,
beth.guerard@salliemae.com
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