College Loans and Taxes
 

I apologize in advance if this question is pretty dumb, but I know less about taxes than I do about the Etoro tribe of Papua New Guinea.

I'm about to graduate this year from a very expensive university with a large amount of student loans. Fortunately, I have made a good amount of money playing online poker during the last year or so and was planning on using this to pay off my loans before I graduate.

Unfortunately, the ridiculous amount of taxes I will apparently have to pay on my winnings will put a dent in these plans. What I am wondering is if there is any way to get some sort of tax break on winnings I use to pay off student loans. I know there are a lot of other college players on these boards who are in the same boat and am hoping someone has some advice.

Thanks.

EDIT: Oh, one other things that kind of sucks. When I report my taxes I'm gonna have to report my poker income to my university and will get a lot less financial aid next semester [img]/images/graemlins/frown.gif[/img] . Any advice on this dilemna?

Re: College Loans and Taxes
 

You do get to deduct some college loan payments off your taxable income, but the deductions phase out as your income increases, so it all depends on how much you made this year. A tax program like TurboTax or a CPA will be able to walk you through this.

As for reporting your income to your university, you have a simple choice. Either you report it honestly and see your financial aid cut (as it should be), or you lie and risk getting discovered. Depending on the university, you may risk all kinds of disciplinary action up and including expulsion. Your choice.

Re: College Loans and Taxes
 

i wouldnt advise you to pay off your loans. youre probably getting them at a ridiculously low interest rate. you could invest your money that you would have used to pay off the loans and your ROI will excede your interest rate. not only that but your loan interest is probably tax deductible.

Re: College Loans and Taxes
 

[ QUOTE ]
i wouldnt advise you to pay off your loans. youre probably getting them at a ridiculously low interest rate. you could invest your money that you would have used to pay off the loans and your ROI will excede your interest rate. not only that but your loan interest is probably tax deductible.

[/ QUOTE ]


yeah this is basically what a lot of my professors have said

Re: College Loans and Taxes
 

[ QUOTE ]
[ QUOTE ]
i wouldnt advise you to pay off your loans. youre probably getting them at a ridiculously low interest rate. you could invest your money that you would have used to pay off the loans and your ROI will excede your interest rate. not only that but your loan interest is probably tax deductible.

[/ QUOTE ]


yeah this is basically what a lot of my professors have said

[/ QUOTE ]

Take this route, works for me, also use turbotax to do taxes, it makes them SOOOOOOO easy