Are My Student Loans Tax Deductible?
Student loans can be a heavy burden on many taxpayers. Luckily, the IRS allows you to deduct a portion of student loan interest which is taken as an adjustment to income. This means you can claim the deduction even if you do not itemize deductions (file Schedule A on your 1040). Unfortunately, the IRS also has many limitations on the deductibility of student loan interest. For example, the maximum interest deduction is $2,500, which for most professionals is a drop in the bucket; the loan proceeds must have been used to pay for qualified education expenses; and your Modified Adjusted Gross Income cannot exceed $155,000 (married filing jointly) or $75,000 (single, head of household, or qualifying widow). We at ACap know that managing your student loan can be frustrating and confusing, so we are currently working on creating a student loan resource page on our website to help you through the process. Stay tuned.