Student Loan Interest and Tax Deductions

Answer: Yes!  Your student loan interest is tax deductible.The maximum any person can deduct for student loan interest paid is $2,500 per tax return. The instructions on the 1040 tax form show you how to compute your deduction based on your income level. There are some income limits. If you are:

Married and filing jointly: Your adjusted gross income must be under $135,000 to get any deduction and must be $100,000 or less to get the full $2,500 deduction.

Filing as single, head of household or qualifying widow(er): Your adjusted gross income must be under $65,000 to get any deduction and must be $50,000 or less to get the full $2,500 deduction.