Student Loan Interest

If you pay interest on a qualifying student loan, you can take the student loan interest deduction. This deduction is an adjustment to your income, so you do not need to itemize your deductions (as long as it does not reach the annual limit of your filing status).

You can claim the deduction if:

• You paid interest on a qualified student loan
• You are legally obligated to pay interest on a qualified student loan
• You do not file as married filing separately
• Your modified adjusted gross income (MAGI) is less than the annual specified amount
• Neither you nor your spouse (if filing jointly) were claimed as dependents on someone else’s return

As a reminder, a qualified student loan is a loan you take out for higher education purposes. You can take it out for yourself, your spouse, or a dependent for education provided during an academic period for an eligible student. And it must be paid within a reasonable period of time.

This entry was posted on Monday, November 16th, 2020 at 3:04 pm and is filed under Deductions. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.