iagolives wrote:borntorun wrote:iagolives wrote:So, I know we have to pay income tax on our loan money (or, at least, I'm 95% sure we do), but I don't think they withheld money for us. Does anyone know what our tax rate is? Also, as i'm not currently a resident of the state of MA, does anyone know if I'm going to have to pay state taxes in my actual state of permanent address, MA, or both? I know it seems early, but I need to get my budget set up and I have to know how much money I have to play with to do so. Thanks!
I'm 99% sure student loans aren't taxable. Scholarships are taxable on the amounts not used to cover tuition, books, etc. but I've never heard of anyone having to pay taxes on their student loans.
Wait, so if I am living off of my student loans entirely (i.e. not working and no stock dividends), I won't be paying any taxes next year? That's hard for me to believe. I mean, I hope its true as the amount of money I'll have to live off of will increase by 25%, but I feel like the government wouldn't let me rip them off like this.
Well I didn't take out enough money to support myself if I had to pay taxes on my loans...it didn't even cross my mind. So hopefully I don't have to pay taxes on them...because if I do then I'm screwed.