Student Loan Interest Deduction
This tax deduction is available if you are paying interest on a loan that has been
solely used to pay for education expenses
This tax deduction can reduce your taxable income by up to $2,500 (the equivalent
of up to a $500 reduction in your tax liability, depending on your federal tax bracket).
The amount you are eligible for depends on your income and the amount of student
loan interest you’ve paid. It is taken as an adjustment to your income, so you may
claim this deduction even if you do not have itemized deductions on Form 1040, Schedule
You must be paying interest on a loan that has been used solely to pay for qualified
higher education expenses incurred during enrollment at least half-time in an eligible
program leading to a degree, certificate, or other recognized credential at an eligible
institution of higher education.
Your modified adjusted gross income must be $75,000 or less if single, and $155,000
or less if married and filing jointly.
Qualified education expenses include: tuition, room and board, course-related expenses
(books, supplies, equipment), mandatory student activity fees, and other necessary
If you are claimed as a dependent on another person’s tax return (e.g., your parents’
tax return), only the person who claims you can apply for the deduction.
You may not claim this deduction if your filing status is “married filing
How to Claim Your Benefits:
To determine your eligibility and claim education tax benefits, including the
Student Loan Interest Deduction, you must file a federal income
tax return. To calculate your deduction, use IRS Form 1040 (Line 33) or Form 1040A (Line 18), Student Loan
Interest Deduction, at
Tax information is provided for informational purposes only. Student Financial Aid Services, Inc. is not engaged in providing legal,
accounting, or tax services. Please consult a tax professional, the Internal Revenue Service, or IRS Publication 970 for tax information and assistance.
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