Make sure to claim the student loan interest deduction. Borrowers can deduct up to $2,500 in interest on federal and private student loans on their federal income tax return. The student loan interest deduction is taken as an above-the-line adjustment of income, so taxpayers do not need to itemize to claim the deduction. The deduction may yield hundreds of dollars in tax savings.
Parents and grandparents can gift to their kids and grandchildren to help them pay their student loans.
The IRS Raised the Estate and Gift Tax Limits for 2019.... The IRS also confirmed that the annual gift exclusion amount for 2019 remains at $15,000 per individual per year, unchanged from 2018. This means you can give $15,000 to as many people you want each year without filing a gift tax return.
Find out whether your employer (or potential employers) may offer new hires and employees the ability to be in a program where instead of getting 401(k) matches or other traditional benefits, they can get help paying down their student loans.
Jordan Kerner is a Financial Advisor offering Securities and Investment Advisory Services through Waddell & Reed, Inc., a Broker/Dealer, member FINRA/SIPC and Federally Registered Investment Advisor. He can be reached at (475) 619-2238 or jkerner@wradvisors.com. This is meant for educational purposes only. It should not be considered investment advice, nor does it constitute a recommendation to take a particular course of action. Please consult with a financial professional regarding your personal situation prior to making any financial related decisions. LPL Financial does not offer tax or legal advice. (05/19)
Jordan Kerner
Financial Advisor, Waddell & Reed, Inc.
Office: 475-619-2240 | Cell: 917-301-7274 | Fax: 203-557-6262
www.jordankerner.wrfa.com | jkerner@wradvisors.com
495 Post Rd E Ste 209| Westport, CT 06880