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

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

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