It may be claimed to defray the costs of the first two years of tuition and fees for you, your spouse, or your dependent enrolled in a degree program at a college or vocational school. A qualifying student is not required to be in a degreed program. The student loan interest deduction, new for 1998, applies to the first 60 months in which interest payments are required and is subject to phase-out rules. Be aware that mortgage and home equity interest are itemized deductions. Loans made to family or friends that are not repaid are atypically considered nonbusiness bad debts and are deducted on Schedule D of your tax return as a short-term capital loss.
Any balance is deductible as a capital loss carryover in future years.
Fees paid to tax advisors and preparers also fall into the category of miscellaneous itemized expenses. Our members are available for interviews.