Student Loans

When creating my budget and adding a Student Loan category for each of my student loans, should I list is as a tax line item? If so, how would I go about ensuring the program properly tracks just the interest and not the principal (as the interest is the only thing that can be a tax deduction)?

Thanks!

Best Answer

  • Sherlock
    Sherlock SuperUser ✭✭✭✭✭
    edited December 2020 Accepted Answer
    You should be using a split transaction when entering loan payments that include and entries for interest and principal.  The category you used for interest should be associated with the Form 1040: Student loan interest tax line-item.

    In the budget, I suggest including the loan payment: select Manage Budget Categories and Detailed Loan Payments.

Answers

  • Sherlock
    Sherlock SuperUser ✭✭✭✭✭
    edited December 2020 Accepted Answer
    You should be using a split transaction when entering loan payments that include and entries for interest and principal.  The category you used for interest should be associated with the Form 1040: Student loan interest tax line-item.

    In the budget, I suggest including the loan payment: select Manage Budget Categories and Detailed Loan Payments.
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