Taxpayers who have taken loans to finance an education at an eligible institution may be qualified to deduct interest they pay on loans for themselves, spouse or their dependent.
IRS Overview of Student Loan Interest Deduction
||You can reduce your income subject to tax by up to $2,500.
||Your student loan:
- must have been taken out solely to pay qualified education expenses, and
- cannot be from a related person or made under a qualified employer plan.
||The student must be:
- you, your spouse, or your dependent, and
- enrolled at least half-time in a degree program.
|Time limit on deduction
||You can deduct interest paid during the remaining period of your student loan.
|Limit on modified adjusted gross income (MAGI)
||Limit on modified adjusted gross income (MAGI)
Details and additional information: Student Loan Interest Deduction (IRS Publication 970)