Will I Get More Back In April For Paying Student Loan Interest?
I paid off only student loan interest last year. I also took two state and two federal deductions off my paycheck. Will that affect how much I get back? If not, what does?
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Heavy Metal Bands said
am February 1 2010 @ 11:56 pm
Your W-4 filing determines how much tax is withheld from your paycheck. The more allowances that you claim on your W-4 means less taxes are withheld from your paycheck. Therefore, you should have a smaller tax refund than someone that claimed zero allowances assuming everything else is equal.
Paying student loan interest lowers your taxable income which increases your tax refund.