Student loan interest tax deductions
According to IRS Publication 970, Tax Benefits for Education, you can generally reduce your taxable income by up to $2,500 if:
- Your student loan was taken out solely to pay qualified education expenses and it can't be from a relative or made under a qualified employer plan.
- The student is you, your spouse, or your dependent.
- The student is enrolled at least half-time in a program leading to a degree, certificate, or other recognized educational credential at an eligible educational institution.
- Your modified, adjusted gross income (MAGI) is not more than $85,000 if filing as single, head of household, or qualifying widow(er) or not more than $175,000 if married filing a joint return.
For full details on eligibility requirements for a student loan deduction and how to claim it, see Tax Benefits for Education or speak with a tax professional.