Ask TaxMama.Com Tax Information With A Mother's Touch Published by Eva Rosenberg, MBA, EA Volume 6, Issue 264        June 25, 2004

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Conjoined Student Loans » From: Salem, Oregon Dear TaxMama: If husband and wife consolidate student loans together, will the married couple still be eligible for the full $5,000 student loan interest deduction? I know that if we consolidated separately we would each be able to deduct $2,500 interest annually. So we don't want to consider joint consolidation if we would end up losing half of the deduction. Thanks! James Hi James, I honestly don't know. First of all, looking it up - the deduction is per return. A couple may deduct $2,500. Married, filing separately, you may deduct nothing. Two single people filing may deduct $2,500 each. Seems like one of those marriage penalties they just don't point out to us, doesn't it. It makes no difference if you consolidate - you still won't get more than $2,500 total. So, go for the lowest interest rate you can find. Here's more information on student loan interest. Best wishes, Eva Rosenberg Your TaxMama

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