How the Tax Bill Affects Students and Families Paying for College

How the Tax Bill Affects Students and Families Paying for College
Although taxable income is lower under the current system —
and they lose the student loan deduction — the higher standard deduction, flexible family credits and a lower effective tax rate lower their overall tax bill
Additional child tax credit
Although taxable income is lower under the current system —
and they lose the student loan deduction — the higher standard deduction, flexible family credits and a lower effective tax rate lower their overall tax bill.
The tax legislation that House Republicans proposed last week includes several changes
that could affect student loans: the ability to deduct the interest on your loan would be eliminated; tuition paid by an employer would become taxable; and three existing tax breaks would be consolidated into one.
The loss of the student loan interest deduction is offset by the family flexibility credit and the near doubling of the standard deduction.
These two scenarios — calculated by Jackson Hewitt, the tax service — illustrate how much taxpayers would owe under the current system,
and how their tax bill might change if the Republican plan becomes law.