W-2 Taxes with College Loan Repayment Program

[utak]

Hello all,

I was enlisted with the College Loan Repayment Program, which says that with the first year the Navy pays 1/3 of your student loans, then 1/2 the second year, then the remainder in the third. I wasn't paid my first year, then I got this huge backpay thing on my second year, then I was sent to OCS.

I was told that the lumpsum the Navy paid for my student loans is taxable, when I do my taxes and bring my W-2 to the tax dude, what paperwork do I need to bring in respect to my student loans?

 

[MasterBates]

1098-E Interest forms.

Up to $2500 of interest can come off your adjusted gross income.

I could be wrong, but I think they count it as normal income and tax accordingly. Good deal for you though.

 

[utak]

Sir,

Would a record of payment from my Student Loan provider (Sallie Mae) be sufficient for what I need to bring to the Tax dude?

 

[Scoob]

You're best bet would probably be to visit your local NLSO (Navy Legal Services Office) and put those JAG guys to work for you.

 

[Scoob]

1098-E Interest forms.

Up to $2500 of interest can come off your adjusted gross income.

I could be wrong, but I think they count it as normal income and tax accordingly. Good deal for you though.

Nick - NLSO is you're best source for tax filing and advice, provided you free of charge by the fine people of the USN JAG Corps (when they're not busy saving the world from the cockpit of a Tomcat, that is). Airwarriors, on the other hand, is your best source of free advice from people, who don't do taxes for a living (and love the fact that they don't), guessing at what you'll need.