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Would paying the interest on a student loan hurt income tax refund?
Wiki User
∙ 13y ago
No the qualifying interest paid during the for a qualifying student can be a above the line deduction on the 1040 income tax return page 1 line 33 as an adjustment to income and would reduce your total income amount when it come to the line 37 for your adjusted gross income. This could possible increase your refund amount if all of the rules and qualification are met for you to take this adjustment to income for the qualifying student loan interest that was paid during the year.
This method would reduce your taxable income amount on page 2 of the 1040 tax form because of the reduction to your total income.
Wiki User
∙ 13y ago
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What is the journal entry for interest received on a state tax refund?
Debit cashCredit interest income
If you are making you monthly payments on your student loan can you still get your income tax at the end of the year?
If you are not delinquent with your student loan, your federal income tax refund will not be garnished.
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!
I am working on my tax return and want to know how interest affect refunds.?
The income that was paid to you on an 1099-INT is taxable income. The interest paid to you will increase your overall income, which lowers your refund amount.
If you receive a refund on state income taxes that includes interest the interest is nontaxable if the refund is not taxable?
First, a refund of State Income Tax, was deductible when it was paid (and presumably taken as a deduction), and IS taxable when refunded. (You took a tax benefit when paying it, so you have to give back that same tax benefit when you get the tax (or some portion of it) refunded). I can see no reason that the interest wouldn't be taxable. Only certain interest, (from specifically declared but not all Municipal and some other bonds), is not taxable. Otherwise, the source of the interest does not effect it's character as interest, which is taxable. The fact it may be from a government doesn't mean much. Certainly lots of people get paid lots of things from the government that are taxable.
What is the definition of a federal tax refund?
A Federal Tax Refund is when the Government pays you back money it has technically borrowed from you during the previous year without paying you interest.
When filing for the state income taxes do you receive your federal income tax refund as well as your state income tax refund?
No, when filing for the state income taxes, you will receive your federal income tax refund as well as your state income tax refund.
Can an unemployed single mom and college student get a tax refund check?
Well, that depends. The tax refunds that people get every year are income tax, which is so named because it is based on income. If you are unemployed, or without income, there may not be a lot of tax there to refund. The idea of a refund is that you get back what you paid in the first place. If you had no income, then a refund is unlikely, although depending on whatever other source of income it is that enables you to survive, it is possible. Just fill out the 1040EZ to see how it works out in your situation.
If you forgot to file a w2 which would have made you get more of a refund on your income taxes what will happen?
Simply file an amended return - a form 1040 X. Your refund will include interest on the excess.
Is your income tax return qualify as income?
In the U.S., your federal income tax refund does not count as taxable income for the next year. If you receive a refund from your state, and you itemized your deductions on the federal return, then the state refund will count as income on your federal return. (If you didn't itemize, then your state refund won't count as income.)
What is refund of interest?
It is a refund of a percentage of interest one has paid during a particular period.
Which type of tax helps in reducing disparities of income?
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