If I get student loans in the amount of 34900.00, and put into a checking account (private student loan) is this income that I have to report?
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jphenor July 11th, 2010 at 4:02 pm
No it is a LOAN. You will have to report and gains from it, such as interest etc.
yahoohoo July 11th, 2010 at 4:57 pm
No, a loan is not income.
milliondollarssoon July 11th, 2010 at 5:06 pm
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Fool in the Rain July 11th, 2010 at 5:53 pm
No, but if you use the money for anything other than school (tuition, books, etc.) you have to report the money as income on Line 21 of your tax return.
csabrinam July 11th, 2010 at 6:14 pm
Yes and no, If you use the loan as for tution, it will not be concider income. But it does however help you use the intrest you pay as a deduction later on. And for now that your in school and u use it toward tution and books, it help you apply for a education credit on taxes. Yes it’s income if you use it for boarding expenses and personal needs.
in love with superman July 11th, 2010 at 6:36 pm
No the loan is not income. You should receive a form at the end of the year stating how much interest you paid to the financial institution you are paying the money back to and that is a credit on your tax return. Any interest you EARN on the money is taxable and you should receive a 1099-int from the financial institution you have the money in IF it is an interest bearing account. Check out the irs.gov website. There are many deductions and credits for college students.
Judy July 11th, 2010 at 7:04 pm
A loan, student loan or not, is not income no matter what you use it for – a loan means you have to pay it back.
If you default on a loan and the lender writes it off, then you could become liable for tax on the amount written off since it could be considered as income.
Shone July 11th, 2010 at 7:37 pm
I definately recommend http://www.consolidation-fixed-loan-rate.com They have a lot of good resources.
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Jolie July 11th, 2010 at 4:51 pm
I am Canadian, but I am 100% sure that student loans are not considered income here, and I seriously doubt they would be considered income down there! The government usually tries to give students a break!