The Daily Money: Have student loans? What to know for tax season

Many student loan payments have been paused under a moratorium extended by President Biden. What does that mean for your taxes?

Read in browser Read in browser The Daily Money ALL THE MONEY NEWS YOU NEED TO KNOW Sun Mar 26 2023 Brett Molina |  Consumer Tech Reporter @brettmolina23 As of Sunday, Americans are just over three weeks away from hitting the dreaded tax deadline. If you already filed and got your refund, congratulations. But for those taxpayers who have to pay Uncle Sam, better get moving. If you've been paying off student loans for a while, you likely know the drill. You might receive a document detailing how much interest you paid the previous year, which you'll then include on your tax return. This tax season, much like the last couple years, will be different. President Joe Biden extended a moratorium on student loan payments launched at the start of the COVID pandemic in March 2020. The pause on student loan payments could extend to August 2023, depending on the Supreme Court, which will decide the fate of Biden's student loan debt forgiveness program. Any loan payments would resume 60 days after the litigation ends or the forgiveness program starts. What does this mean for my taxes? Because payments are paused, there's no interest to collect, said Jo Willetts, director of tax resources at Jackson Hewitt. "There's really nothing to deduct right now," she said. If your student loans qualified under the moratorium, then you have no interest to deduct on your tax return. However, if you have a loan from a qualified banking organization not included in the pause, you could still deduct that interest. Double check with your lender to confirm. Once the pause lifts, many Americans will return to paying off those loans. If you're among them, here are steps you can take to prepare. About The Daily Money Each weekday, The Daily Money delivers the best consumer news from USA TODAY. We break down financial news and provide the TLDR version: how decisions by the Federal Reserve, government and companies impact you. Follow Brett Molina on Twitter: @brettmolina23. Get unemployment benefits in 2022? What you need to know for taxes. If you collected unemployment benefits in 2022, you may be wondering if you need to report that income on your tax return. READ MORE Advertisement Surprise! There are times you may want to wait to file your tax return Everyone says file your taxes early, but accountants say there may be times it's better to wait. Here are some of those times. READ MORE Child Tax Credit: Here's what you need to know for this tax season The maximum tax credit per qualifying child is $2,000 for children five and under – or $3,000 for children six through 17 years old. READ MORE What you need to know about inheritance taxes Inheritance taxes are rare and can surprise you after a loved one dies. Here's what to know about how they work, who pays them, and how to avoid them. READ MORE Timing is everything: 4 best times to file taxes It's always a good idea to file by the deadline but you might be able to save money, beat crime or realize other advantages if you file during other parts of tax season. It all depends on your objective. READ MORE Most states don't tax Social Security, but some do. Here's which ones Which states tax Social Security? Most states don't tax Social Security but some do. Here's which ones they are, and how they might do it. READ MORE Why would the IRS audit you? Here's what could trigger a tax audit What triggers an IRS tax audit? Make sure to correctly report your income from a W-2 or similar tax form. If you don't it may trigger an audit. READ MORE Stole a car? Took a bribe? Make sure you report it to the IRS. Here's why. The twitterati has had a field day with the official requirements to report the value of your ill-gotten gains. READ MORE What are the different tax brackets? How to find out which one you're in 2022 US federal tax bracket guide: Which tax bracket am I in for 2022? What are the new IRS tax brackets for 2023? READ MORE Retirees still pay taxes: Here's what to know to pay a little less Retirees still have to pay taxes but there are steps you can take to make sure you pay less. READ MORE Advertisement Sign up for the news you want Exclusive newsletters are part of your subscription, don't miss out! We're always working to add benefits for subscribers like you. SEE ALL NEWSLETTERS ➔ SEE ALL NEWSLETTERS ➔ Newsletters   |    eNewspaper   |   Crosswords Follow Us Problem viewing email? View in browser Unsubscribe  •   Manage Newsletters  •  Terms of Service  •   Privacy Policy/Your California Privacy Rights  •  Privacy Notice  •   Do Not Sell My Info/Cookie Policy  •  Feedback