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.
Limits
The maximum amount of student loan interest you can claim as a tax deduction is limited to $2,500.
Income Limitations and Phase-outs
The deduction is also limited by your income. If your modified adjusted gross income is under $60,000 (or $125,000 for married couples filing a joint return), then you can deduct up to $2,500 in student loan interest.If your income is over $60,000 but under $75,000 ($125,000 to $155,000 for married people filing jointly), then your deduction for student loan interest will be prorated.
If your income is over $75,000 ($155,000 MFJ), then your student loan interest is not deductible at all.
Married persons filing separately are not eligible for the student loan interest deduction.
Modified adjusted gross income means your adjusted gross income without taking into account any deduction for student loan interest.
Tax software will calculate the deductible portion of your student loan interest, or you can use the worksheet found in Publication 970, chapter 4.
Tax Laws Relating to the Student Loan Interest Deduction
