Question

I would like to learn more about student loans and taxes. Can I claim a student loan deduction for paying down my loan?

Answer

To answer your question about student loans and taxes, you can’t deduct amounts you paid or prepaid on the principle.

However, a student loan deduction is available for you to deduct up to $2,500 in interest paid on a qualifying student loan.

The student loan interest deduction begins to phase out if your adjusted gross income (AGI) is:

  • $65,000 if filing single, head of household, or qualifying widow(er)
  • $130,000 if married filing jointly

The deduction is completely phased out if your AGI is:

  • $80,000 if filing single, head of household, or qualifying widow(er)
  • $160,000 if married filing jointly

 

Related Topics

Related Resources

Is my state refund taxable income if I itemized my federal tax return?

Learn whether your state refund is taxable with help from the tax experts at H&R Block.

If I can’t claim my child as a dependent. I am claiming non-dependent medical expenses for the medical treatment I paid

Learn whether you can claim a non-dependent's medical expenses on your tax return with advice from the tax experts at H&R Block.

I am having a child and would like to know if deducting child birth expenses on my tax return is allowed by the IRS. Can

Learn more about deducting child birth expenses with advice from the tax experts at H&R Block.

I have a question about tax deductible gifts. I give my adult child money each month to support herself and her childre

Are gifts given to individuals considered tax deductible? Learn more from the tax experts at H&R Block.