Can You Deduct Student Loan Interest on Your Taxes in the U.S.?
If you're paying off student loans, there's a bit of good news: You may be able to deduct up to $2,500 in student loan interest on your federal tax return. Here’s how the deduction works, who qualifies, and what to watch for. 🎓 What Is the Student Loan Interest Deduction? It’s an “above-the-line” deduction , meaning you can claim it even if you don’t itemize . You can deduct: Up to $2,500 per year in interest From qualified student loans used for education expenses ✅ Who Qualifies? You must: Have paid interest on a qualified student loan in the tax year Have a Modified Adjusted Gross Income (MAGI) under certain limits: Full deduction if MAGI < $75,000 (single) or $155,000 (joint) Phases out above that You cannot be: Claimed as a dependent Married filing separately 🧾 What Is a Qualified Loan? Loans taken out solely for qualified education expenses Borrowed for you, your spouse, or a dependent From a legitimate l...