Student loan interest deduction

If your income was too high, you might not be able to deduct student loan interest.

You can deduct interest you paid on a student loan for yourself, your spouse or any person who was your dependent when you took out the loan. A deduction reduces your taxable income, reducing the amount of income tax you owe.

Go to this section in Credit Karma Tax: Student Loan Interest

How much can I deduct?

The amount you can deduct for student loan interest depends on multiple factors, including the amount you paid in interest and your modified adjusted gross income (MAGI).

The most you may deduct is up to $2,500 of interest you paid. This deduction is phased out and eventually eliminated based on your MAGI and your filing status.

The amount you can deduct beings to decrease, or phase out, once your MAGI is over an IRS-specified amount that changes each year. Once your MAGI reaches a certain threshold, you can't claim a student loan interest deduction. Generally this will only be applicable to higher income individuals and couples.

Make sure to enter all the student loan interest you paid during the year and we’ll calculate the deduction you are able to take based on all of the other information you provide.

If you’re curious about how much student loan interest you can deduct based on your income, you can use the IRS Interactive Tax Assistant: Can I Claim a Deduction for Student Loan Interest? (This is not necessary to file with Credit Karma Tax and is provided for informational purposes)

I didn't get a form reporting my student loan interest. How do I know how much I paid?

The lender who holds your student loan should provide you with a Form 1098-E, Student Loan Interest Statement as long as you paid at least $600 in interest to that lender over the year. Even if you did not receive a Form 1098-E you can still deduct the interest you paid. You can review your loan statements or try contacting the lender directly to find out how much interest you paid last year.
Source: irs.gov