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deepindebt
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Joined: 29/April/2005
Location: Canada
Points: 4
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Topic: Income tax changes? Posted: 27/May/2008 at 2:51am |
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I was just told that if you defaulted on student loans in the past, you are no longer able to declare the interest paid as a tax deduction. Since I paid over 5,000.00 in interest last year, this is very distressing. So first, is this true? And second, can this change be made retroactively? Third, the reason for the default was an error -- I was eligible for interest-free status, someone misplaced a decimal and showed my income as 120,000.00 instead of 12,000.00. The government took money from my bank account and I was forced to declare bankrupcy. Really, really upset right now!
Any suggestions?
Thanks, DD
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SolveStudentDebt
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Joined: 05/November/2003
Location: Canada
Points: 5996
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Posted: 27/May/2008 at 12:31pm |
Whoever told you that is incorrect. However, if there is a judgment anchored, you lose your right to claim the interest. If there is no judgment, then you can claim all of the interest that had accrued. If you can prove that you were defaulted in error, why not make the argument with the loan provider? Demonstrate their error and if it is theirs, they have to correct it.
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Solve Student Debt specializes in solutions for students and graduates in student loan default, and those at risk of defaulting. solvestudentdebt.com
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thundercat
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Joined: 09/March/2008
Location: Canada
Points: 44
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Posted: 28/May/2008 at 10:24am |
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He is probably in the similar situation as most of us are, how can you prove you defaulted with no evidence?
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Madmorrigan
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Joined: 09/March/2005
Location: Canada
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Posted: 28/May/2008 at 12:19pm |
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DD...just to let you know--I've been 'defaulted' on my loans for many many MANY years and I have always been able to declare my interest as a deduction. :o)
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Madmorrigan
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Posted: 28/May/2008 at 12:20pm |
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OH.....and I declared bankruptcy during this time--still able to claim, no probs.
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deepindebt
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Joined: 29/April/2005
Location: Canada
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Posted: 30/May/2008 at 6:34am |
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The Ontario portion -- does anyone know how to get the receipt? I called 5 different numbers and nothing.
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SolveStudentDebt
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Joined: 05/November/2003
Location: Canada
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Posted: 03/June/2008 at 1:08am |
Call 800-387-5604 and file a complaint about that. Then, ask them the tele # for the MTCU's accounting group and CMU (Collection Management Unit).
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Solve Student Debt specializes in solutions for students and graduates in student loan default, and those at risk of defaulting. solvestudentdebt.com
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