Deduct This The History Of Student Loan Interest

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- Tax deductible interest at least for federal purposes . Interestingly, the student loan interest deduction wasn 't initially intended to be a special deduction. After that tax was struck down as uncons.utional, Congress went back to work, creating a new federal income tax system which was made law in 1913.. - A TIMELY PROPOSAL TO ELIMINATE THE. STUDENT LOAN INTEREST DEDUCTION. Victoria J. Haneman*. INTRODUCTION. Deductions for interest paid on indebtedness have a long and venerable history in United States tax law. The interest deduction was included in both the Civil War Income Tax . - The student loan interest deduction applies to federal, state, and private higher education loans, and is open to all eligible taxpayers who pay interest on student debt, even if they do not itemize their deductions..

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