Student Loan Interest Deduction: Ease the Burden of Payments

If you pay interest on a qualified student loan, you’re generally able to deduct some of that interest.

Here are a few pointers to help guide you in claiming the deduction:

• You can deduct up to $2,500 in student loan interest that you paid during the year.
• You can claim the deduction as an adjustment to income, so you don’t need to worry about itemizing your deductions on Form 1040, Schedule A.
• You cannot claim the deduction in any tax year in which your filing status is married filing separate.
• For 2015, the deduction is subject to modified adjusted gross income (MAGI) phase-outs for anyone with MAGI between $65,000 and $80,000 ($130,000 and $160,000 for married filing jointly).
• You can claim the student loan interest deduction indefinitely until the loan is repaid.