Questions & Answers

What is deductible student loan interest?

The maximum amount of deductible interest is $2,500 for 2020.

You can fully deduct your student loan interest (up to $2,500) if you meet the following qualifications:

  • You aren't filing as Married Filing Separately.
  • You aren't being claimed as a dependent on someone else's return.
  • Your adjusted gross income is below $70,000 ($140,000 if filing as Married Filing Jointly).
You can get a partial deduction if your adjusted gross income is between $70,000 and $85,000 ($140,000 and $170,000 if filing as Married Filing Jointly).

Interest from loans that you took out to pay for the qualified education expenses for yourself, your spouse, or your dependents counts for deductible student loan interest.

Don't include any amount paid from a distribution of earnings made from a qualified tuition program (QTP) after 2018 if the earnings are treated as tax free because they were used to pay student loan interest.

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