As noted, their salaries bar any deduction. Starting in 2003, these amounts will be indexed to reflect inflation. Expenses that pass muster generally include tuition, fees, room and board and related expenses. Moreover, the loans must relate to a time when the student was enrolled at least half-time. Married persons like Wendy and Rob must file jointly.
Separate filers forfeit any deduction.
The deduction is allowed only for the first 60 months in which they're required to make interest payments. No deduction is allowed after the 60-month period expires. But they can deduct interest on loans taken out before 1998 as long as the payments fall within the 60-month period. So the deadline could be another hurdle for them. Guest columnist Julian Block is an attorney and former IRS investigator who has been cited as a leading tax professional and an accomplished writer on taxes.