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What kind of taxes are charged on the principal of student loans?

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βˆ™ 2013-03-13 21:19:53

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There are no taxes on the principal of any loan, student or otherwise.

In fact, there are no taxes on the payor of interest on a loan, student or otherwise. (The receipient of interest has taxable income of the amount earned).

The interest paid on a loan secured by ones residence, are generally, deductible (the opposite of paying taxes)..

2013-03-13 21:19:53
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Related Questions

Can you get student loans with back taxes?


Can taxes be taken for student loans?

Federally guaranteed or insured loans, yes.

Can you get financial aid after your taxes were offset for student loans?


Do federal student loans count as income for tax purposes?

No. Student loans are borrowed money, and is not considered "income;" therefore, you do not include them on your taxes.

Will back taxes effect your student loans?

No, but is will affect your credit report.

Can student loans be taken out of your federal taxes?

Yes, if your at a public school but not at private schools

How to find out if my taxes are being help for student loans?

Contact your loan servicer or your guarantor.

Can disability be garnished?

Yeah by the Feds, IRS for back taxes (student loans) Dept of Education

Can you claim someone one your taxes who owes the student loans?

too bad so sad

What debts will bankruptcy not wipe out?

most taxes, child support, student loans and criminal fines

Can you take out student loans if your parents have unfiled income taxes?

You can but as soon as your parents file their taxes you will have to amend your FAFSA application and it may alter the amount for which you are eligible in student financial aid.

What can't you file bankruptcy on?

student loans and child supportalso if you owe the IRS for back taxes

Can you consolidate your DIRECT student loans if your taxes are being garnished?

Yes, as long as you have not consolidated through Direct previously.

Is it possible for collections agencies to take your taxes without your knowledge?

No, Your taxes are really only able to be diverted for Government debts, child support and student loans.

Do you file for taxes if you are a full-time student dependent on student loans?

Yes it is possible that as a full time student you would be required to file a 1040 federal income tax return

Can the federal government garnish the total amount of your social security check?

For unpaid taxes and unpaid student loans, yes.

How does not repaying student loans affect the college and other students?

It affects all of us that pay taxes or want to obtain student loans for us or our children. Theft of this funding for any reason should be criminal. Absolutely yes, it hurts everyone. Not paying these loans is stealing clear and simple.

Does a student loan refund have to be claimed as income on taxes?

Loans are never taxable...I'm not sure what you mean by a loan refund though!

What is the average percentage withheld from tax refunds for defaulted student loans?

They can, and will, take the entirety of your tax return for any outstanding federal debt including student loans and prior year taxes. There is no legal requirement that they return anything to you owe other branches.

What news articles were there about student strikes in the year 2012?

There are several news articles that can be read online about student strikes in Canada, Yemen and China. Most of them involved their right to privacy, unfair taxes on loans and grants for educational purposes and undisclosed fees that were added to loans.

How do you stop your income taxes from being taken by defaulted student loan collections?

In the US, the only way you can keep the government from taking your tax return in the future is to consolidate the loans and get them out of default. You can get help with the consolidation by clicking on the link at the bottom of this text box. Debt from student loans, especially gove. student loans as well as child support and other government obligations usually can not be discharged. They have to be paid.

If your car is repossessed can they garnish your income taxes?

Not normally. They can however file a non wage garn and get your taxes when you deposit them into your checking or savings account. Usually only, government and state can withhold your taxes...i.e. back taxes, child support, student loans etc...

Do you pay taxes on financial aid?

No, you do not pay income taxes on student loans because they are debt. You do however need to look into Grants as the laws are different for free money. You do not pay taxes on a LOAN, because it has to be paid back, so it is not income.

Will they take how much you owe in student loans out of your taxes?

Not out of your taxes but they will take it from your tax refund. If you are on time with your payments and are not in default, they will not take your refund. The only way this will happen is if you are in default, then a lien will be placed on your tax refunds.

Is it possible for a student to get a mortgage with a partner that is already employed full time?

Yes, as long as there is enough income to support the payment. If you as a student do not have any income, the other person will have to prove the income to support the new mortgage payment, any loans (car,/student loans), credit cards in both names and the taxes & hazard insurance.