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WASHINGTON — Newly minted doctors and other health care workers may lose a critical tax deduction under the tax code overhaul House Republican leaders unveiled Thursday.

The proposal repeals the student loan interest deduction — a policy that helped more than 12 million Americans who racked up education loans save up to $2,500 on their tax bills in 2015. The popular policy doesn’t require taxpayers to itemize their deductions to claim it — instead, it’s available to anyone paying interest on either private or public student loans who makes less than $80,000 in a year.


Many of those student loan holders are recent medical school graduates, who make a median $54,600 in their first year of residency, according to the Association of American Medical Colleges.

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  • After residency, new docs make just enough that they do not qualify for the student loan interest deduction because of the alternative minimum tax (AMT). The one good thing I saw in Trump’s tax reform was that it would remove the AMT and then I would be able to deduct a fraction of my student loan interest. Now, that deduction is the on the chopping block so one of the biggest advantages of repealing the AMT will be gone.

  • And people wonder why there’s a doctor shortage, and the rates of suicide and depression are so much higher for medical students and doctors than they are in the general population.

  • No attending physician has gotten a penny of student loan tax deduction. We’re all too ‘rich’ as it is phased out in mid $100Ks incomes.
    Never mind the $300,000 in debt and little to no savings at age 30.

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