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  • #1

    Student Loan Interest Deduction

    Working on my taxes right now.  I've always done them myself, but usually through H&R Block online.  I'm working on them completely on my own now because I hate paying so much money to get my own money back.  I have a question about Student Loan Interest Deduction.  I haven't been able to find much info out there about how it applies to state taxes.

    I finished fellowship in June (in Arizona) of last year & started my attending job last year in July (in Utah).

    For my federal return, I made too much money to be able to take the student loan interest deduction.

    My question is regarding my state returns.

    Can I take the interest deduction I paid while a resident of those states?  Neither one would get above the federal income limit.  I've searched through the Arizona tax forms and instructions and haven't found anything.  Honestly, haven't gone completely through my Utah return yet though.

    Thanks in advance for any help!
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    • #2
      Just figure out it.  No difference on my Utah return, but gets me an additional $29 back on my Arizona state return?  Anyone have any thoughts?

      I couldn't find anything about which states allow for student loan interest deduction.

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        • #3

          TotallyBroke wrote:



          Just figure out it.  No difference on my Utah return, but gets me an additional $29 back on my Arizona state return?  Anyone have any thoughts?

          I couldn’t find anything about which states allow for student loan interest deduction.
          Click to expand...


          Every state is different. While it's easy to comment on federal taxation, if you are going through this exercise merely to save money on HRB online, I question how you value your time   .
          My passion is protecting clients and others from predatory and ignorant advisors 270-247-6087 for CPA clients (we are Flat Fee for both CPA & Fee-Only Financial Planning)
          Johanna Fox, CPA, CFP is affiliated with Wrenne Financial for financial planning clients

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            • #4
              No need to be snarky jfoxcpafp.

              I do value my time.  A little extra time spent now learning the ins and outs is well worth it if it will save me from having to pay HRB hundreds now and some CPA thousands in the future.

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                • #5
                  TotallyBroke, what jfoxcpafp means is: HR block is like 35 bucks....you are asking about 29 bucks....it doesnt make sense.

                  why do you think it costs you HUNDREDS of $$$.....

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                    • #6
                      HRB was up to ~$80 for premium (wife has a small business), plus $37 per state for 2 states.

                      The $29 isn't as important to me as the knowledge.  Just trying to learn...

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                        • #7

                          TotallyBroke wrote:

                          The $29 isn’t as important to me as the knowledge.  Just trying to learn…
                          Click to expand...


                          If that was the reason, there is no better way to learn how taxes work. I used to be able to explain AMT...
                          My passion is protecting clients and others from predatory and ignorant advisors 270-247-6087 for CPA clients (we are Flat Fee for both CPA & Fee-Only Financial Planning)
                          Johanna Fox, CPA, CFP is affiliated with Wrenne Financial for financial planning clients

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                            • #8
                              Judging by Utah form TC-40 and TC-40B, it looks like it TC-40B just copies what your federal amount was on form 1040 line 33 (federal student loan deduction), and since student loan interest is an above-the-line deduction or "adjustment" if you can take it (meaning it actually reduces your AGI instead of just lowering your taxable income), and it's AGI that's used on the Utah forms with no additional space for it on TC-40...I'd say it's a reasonable conclusion you don't get to claim any deduction for it.

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                                • #9
                                  Yea, in Utah you're definitely not going to get a deduction if you don't get it on the federal. It's been a long time since I did taxes in AZ though.
                                  Helping those who wear the white coat get a fair shake on Wall Street since 2011

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