The Student Loan Interest Deduction
With student loan payments resuming after a long hiatus (due to, well, you. know), millions of borrowers are facing monthly student loan payments, which for many, can be burdensome. However, most people who owe student loan debt and make interest payments can deduct those interest payments from their taxable incomes.
This video describe the Student Loan Interest Deduction. Which loans qualify, which borrowers qualify, and where to report the deduction on form 1040.
2025 UPDATE:
The 2025 Modified Adjusted 'Gross Income (MAGI) phaseout for the Student Loan Interest Deduction is $80,000 - $95,000 for Single/Head of Household filers and $165,000 - $195,000 for married couples filing jointly.
0:00 Introduction
0:31 Which loans qualify for the Deduction?
1:58 Which borrowers qualify?
4:58 1098E and Reporting the Deduction
5:45 Conclusion
To learn more about adjustments in general, click here: • What is Adjusted Gross Income? (and why is...
To learn about other tax benefits for post secondary education click here: • Do you Qualify for a Lifetime Learning Cre...
and here: • The American Opportunity Credit (or the sa...
Additional Information and Resources:
IRS Publication 970: "Tax Benefits for Education" (This publication contains the Student Loan Interest Worksheet): https://www.irs.gov/pub/irs-pdf/p970.pdf
IRS Schedule 1: "Additional Income and Adjustments": https://www.irs.gov/pub/irs-pdf/f1040...
IRS Form 1098-E: "Student Loan Interest": https://www.irs.gov/pub/irs-pdf/f1098...
Nerdwallet: "How to Get the Student Loan Interest Deduction": https://www.nerdwallet.com/article/lo...
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DISCLAIMER: This video is for educational and informational purposes only. It is not intended to render tax advice or financial advice for individual situations. If you have questions regarding your particular situation, please consult with a qualified tax or financial professional.