Celebrating 10 years! 2007-2017

Potential increase to student loan interest tax deduction - House Bill HR3573

Boy, wouldn't this have come in handy when I was paying stud caj11108/22/17
Probably not going to pass... but I'm a big supporter. thirdtierlaw08/22/17
Seems like a measure that allows law schools to charge exorb justrmor08/22/17
Just wrote my representative. 2breedbares08/22/17
completely phased out when making 200k or more filing jointl gladigotaphdinstead08/22/17
I also wrote my representative in support. guyingorillasuit08/22/17
This has absolutely no effect on me. Ridiculous $100k/$200k lolwutjobs08/23/17
Yes. $180-200k is a common salary for a cop/sheriff/union tr guyingorillasuit08/23/17
just because it's easy doesn't mean it's not a high number. dingbat08/23/17
I recall reading that guy's rant. I think his main problem w guyingorillasuit08/23/17
That's an absurd statement, these bills need to either take lolwutjobs08/23/17
A mortgage payment of $2500 can equate to a $500k 4 bed 3 ba dingbat08/23/17
Either consider yourself blessed that you make that much (be caj11108/23/17
Write congress and make your points. Esp for lawyers, that c physicssezno08/23/17
student loans should be abolished if the nation really wants dingbat08/23/17
caj111 (Aug 22, 2017 - 11:45 am)

Boy, wouldn't this have come in handy when I was paying student loan interest. I hope somebody on here will ultimately benefit from this -

The proposed change to the student loan interest deduction, in bill HR 3573, would increase the maximum tax deduction to $ 7500 or $ 15,000 if married filing jointly, and this deduction would be completely phased out when your total income is $ 100,000 or more, and $ 200,000 or more if married filing jointly.

Call or write your congressional representative and tell them to support HR3573.

Something tells me that these will not be the tax deduction and/or income amounts in the final version of the bill, if it does get passed into law, but at least this gives hope for some people.

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thirdtierlaw (Aug 22, 2017 - 2:40 pm)

Probably not going to pass... but I'm a big supporter.

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justrmor (Aug 22, 2017 - 6:53 pm)

Seems like a measure that allows law schools to charge exorbitant prices, but yeah, I'm completely in favor of it.

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2breedbares (Aug 22, 2017 - 2:48 pm)

Just wrote my representative.

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gladigotaphdinstead (Aug 22, 2017 - 6:59 pm)

completely phased out when making 200k or more filing jointly.... f that.

I'm so sick of arbitrary income caps on $hit. it should be related to COST OF LIVING. i.e. 400K if in the NE or CA.

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guyingorillasuit (Aug 22, 2017 - 8:05 pm)

I also wrote my representative in support.

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lolwutjobs (Aug 23, 2017 - 12:12 pm)

This has absolutely no effect on me. Ridiculous $100k/$200k are the ceilings or that there any ceilings. Do you know how easy it is to make $100k/$200k in the NYC/NJ/CT area?

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guyingorillasuit (Aug 23, 2017 - 12:19 pm)

Yes. $180-200k is a common salary for a cop/sheriff/union tradesman, if you count overtime.

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dingbat (Aug 23, 2017 - 12:36 pm)

just because it's easy doesn't mean it's not a high number. In New York State, only about 25% of the population makes over $100k. In New York City, it's actually lower, only about 23%

So yeah, it's not daddy warbucks money, but we're still talking about a good chunk of change that most people will never receive. Your complaint reminds me of that harvard professor ranting about how $400k/yr meant he was middle class

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guyingorillasuit (Aug 23, 2017 - 1:18 pm)

I recall reading that guy's rant. I think his main problem was he was trying raise children in a very expensive way, and that he thought it was perfectly normal.

And yes, it's a high number that will get you a decent living anywhere, and a certain degree of freedom. But in some places, that income means you're actually wealthy, and in other places, it just means you can rent a 1-bedroom without a roommate.

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lolwutjobs (Aug 23, 2017 - 4:26 pm)

That's an absurd statement, these bills need to either take into account geographic location or just remove the arbitrary cap. A modest mortgage (say $2,500) + 1 kid in daycare ($1,000) + what i am assuming is a payment on ibr ($700) + the most oppressive taxes in the country quickly eat away at a 100k salary without even taking into account if you file married separately for student loan purposes or other necessities (food, retirement) or luxuries (car, smartphone) or even private loans.

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dingbat (Aug 23, 2017 - 4:36 pm)

A mortgage payment of $2500 can equate to a $500k 4 bed 3 bath 4400 sq foot home in Dewey Beach MD.

A $100k salary is not models & bottles, but it should be sufficient if you live within your means

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caj111 (Aug 23, 2017 - 2:25 pm)

Either consider yourself blessed that you make that much (because there are many sh!tlaw people in the NYC area that don't and still have student loans), or write your representative to tell them it would nice to have higher income caps on this proposed change to the law.

It may very well be ridiculous, but nearly every deduction on the tax return has some kind of a partial (or total) phaseout or is rendered meaningless by the AMT, even the most sacred deductions of mortgage interest and charity. If you look at the bottom Schedule A for itemized deductions, if your total adjusted gross income exceeds $155,650, your itemized deductions can get partly reduced to less than what they are calculated as on the Schedule A, so you could end up not getting to deduct every dollar or mortgage interest and/or charity.

That's Uncle Sam for you - what you see is not necessarily what you get.

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physicssezno (Aug 23, 2017 - 1:22 pm)

Write congress and make your points. Esp for lawyers, that cap is ridiculously low. Student loans should be tax deductible for everyone if the nation really wants to encourage people to attend school.

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dingbat (Aug 23, 2017 - 4:37 pm)

student loans should be abolished if the nation really wants to encourage people to attend law school

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