This article explains the student loan interest deduction, eligibility requirements, the maximum deduction amount, and how to report interest payments on your 2024 tax return.
If you paid at least $600 in student loan interest in 2024, your loan servicer should send you a 1098-E form for you to report to the IRS . This form allows taxpayers to deduct the amount they paid in student loan interest from their taxable income. Taxpayers can deduct up to $2,500 or the amount they paid in interest on qualifying loans in the given tax year, whichever is lower. Qualifying loans include both federal and private student loans used to pay for higher educational expenses.
Plus, it can be loans you took out for yourself or a spouse or dependent. However, higher earners may not be able to deduct the full amount of interest they paid. The maximum deduction amount is reduced for single taxpayers with a modified adjusted gross income (MAGI) between $80,000 and $95,000 a year in 2024 and for married joint filers earning between $165,000 and $195,000. Your MAGI is equal to your adjusted gross income plus independent retirement account contributions, student loan interest, foreign earned income etc. to help you determine how much you're able to deduct if your income falls in those thresholds. Taxpayers earning above those thresholds may not deduct their student loan interest payments. If you paid at least $600 in student loan interest in 2024, your loan servicer should send you a 1098-E form for you to report to the IRS. If you paid less than that, contact your servicer to obtain the exact amount of interest you paid during the tax year
Taxes STUDENT LOAN INTEREST TAX DEDUCTION 1098-E FORM IRS MAGI
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