Tax Topics Home > Topic 110 Student Loan Interest Deduction
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Student Loan Interest Deduction
You may be able to deduct interest you pay on a qualified student loan. And, if your student loan is canceled, you may not have to include any amount in income.
The deduction is claimed as an adjustment to income so you do not need to itemize your deductions on Schedule A Form 1040.
You can claim the deduction if all of the following apply:
A qualified student loan is a loan you took out solely to pay qualified higher education expenses. See the instructions for Form 1040 to determine if your expenses qualify.
- You paid interest on a qualified student loan in the tax year
- Your filing status is not married filing separately
- Your modified adjusted gross income is less than $70,000 ($145,000 if filing jointly)
- You and your spouse, if filing jointly, cannot be claimed as dependents on someone else's return
If you file a Form 2555, Form 2555EZ or Form 4563, use Publication 970 instead of the worksheet in the Form 1040 Instructions.
The deduction will start to phase out when the modified AGI exceeds certain amounts. To determine when the deduction is phased out, please refer to Publication 970, Tax Benefits for Education. If you paid $600 or more of interest on a qualified student loan during the year, you will receive a Form 1098-E, Student Loan Interest Statement, from the entity to which you paid the student loan interest.