Claiming Student Loans on 2009 Taxes?

Loans are never income. Grants received in excess of your tuition/expenses are taxable income.

In 2009, there is a NEW wrinkle.

If these are loans you have to pay back, then any tuition you pay with the money is considered tuition *you* paid.

if you are a full time student (as defined by the school) working on your bachelor's degree, you may be eligible for the new American Opporunity Credit which *is* partially refundable. You would NOT show the loans as income.

You will NOT qualify for EIC or ACTC as those require earned income.

No. Student loan money is not income when you receive it. However,

1) If you pay interest on the loan, you can claim a deduction for the interest paid on the student loan

2) If you do not repay the loan and default, then your tax refunds in future years can be intercepted to offset the balance due on the loan

3) If you do not repay the loan in full and any portion of the loan is forgiven or canceled, then you must claim the forgiven or canceled debt as income.

No, you don't claim the loans on a tax return, and you'd get no benefit from it if you tried. It isn't EARNED income so wouldn't be eligible income for EIC.

It is not earned income, so how would you claim it?

You didn't pay taxes on it and if you earned no income you don't qualify for any EIC.