Category: Education: Tax Breaks Related to School
What are the qualifications for the Student Loan Interest Deduction?
You can generally take the student loan interest deduction if all of the following apply:
- You paid interest during the tax year on a qualifying student loan.
- Your filing status is not married filing separately.
- You are legally obligated to pay interest on a qualified student loan.
- Your modified AGI is less than a specified amount which is set annually, and
- You or your spouse, if filing jointly, are not claimed as a dependent on someone else's tax return.
This deduction can reduce the amount of your income subject to tax by up to $2,500.
The student loan interest deduction is taken as an adjustment to income. This means you can claim this deduction even if you do not itemize deductions on Schedule A (Form 1040).
For further information, please click on this link: Student Loan Interest.