You can deduct student loan interest on loans issued for yourself, for your spouse (if you file jointly), and for your dependents.
There are income limitations for being able to claim the deduction.
Reporting Student Loan Interest
Your lender will send you a Form 1098-E. The amount of interest you paid on your student loans for the year will be reported on Form 1098-E, box 1.The maximum amount of student loan interest you can claim is $2,500 per year.
Where to Claim
Report your student loan interest paid on Form 1040 Line 33 or on Form 1040A Line 18.Limits
The maximum amount of student loan interest you can claim as a tax deduction is limited to $2,500.The deduction is also limited by your total income. If your income is under $55,000 (or $115,000 for married couples filing a joint return), then you can deduct up to $2,500 in student loan interest.
If your income is over $55,000 but under $70,000 ($115,000 to $145,000 MFJ), then your deduction for student loan interest will be prorated.
If your income is over $70,000 ($145,000 MFJ), then your student loan interest is not deductible at all.
The phaseouts for the deduction are described in more detail in IRS Publication 970. Tax software will calculate the deductible portion of your student loan interest, or you can use the worksheet found in Publication 970.
