Student Loan Interest Deduction

You can deduct up to a maximum of $2,500 of Qualified Student Loan Interest paid during the year.

In Order to Qualify:

• The loan must have been taken out solely to pay for qualified education expenses.
• The student must be you, your spouse, or your dependent, and be enrolled at least half-time in a degree program.
• Taxpayer cannot have a MAGI(Modified Adjusted Gross Income) above $160,000 if filing a joint return, or $75,000 if filing a single return.

  

The great thing about this deduction is that the amount of interest you paid gets subtracted from your income even if you take a standard deduction which is unlike many other deductions such as mortgage interest, charitable contributions, or medical expenses.

If you paid student loan interest your lender should be sending you a 1098-E, so be on the lookout for it!

 

If you have any questions about this or any other accounting related topic, please do not hesitate to contact us here at Shein & Wente CPA in Melbourne, Florida!