Key Takeaways
- The maximum student loan interest deduction is $2,500 per year, claimed as an above-the-line adjustment on Schedule 1
- For 2024, MAGI phase-out ranges are $80,000-$95,000 (Single/HOH) and $165,000-$195,000 (MFJ); MFS cannot claim this deduction
- The loan must be for qualified higher education expenses for the taxpayer, spouse, or dependent
- Qualified expenses include tuition, fees, room and board, books, supplies, and transportation
- The taxpayer must be legally obligated to pay, cannot be claimed as a dependent, and Form 1098-E reports interest of $600+
Last updated: January 2026
Student Loan Interest Deduction
Maximum Deduction
$2,500 per year (above-the-line, no itemizing required)
2024 MAGI Phase-Out Ranges
| Filing Status | Full Deduction | Phase-Out | No Deduction |
|---|---|---|---|
| Single/HOH | < $80,000 | $80,000-$95,000 | > $95,000 |
| MFJ | < $165,000 | $165,000-$195,000 | > $195,000 |
| MFS | Cannot claim | N/A | N/A |
Who Can Claim?
- Legally obligated to pay the interest
- Not claimed as a dependent
- Not filing MFS
Qualified Expenses
| Category | Examples |
|---|---|
| Tuition & Fees | Course tuition, lab fees |
| Room & Board | Dormitory, meal plans |
| Books & Supplies | Textbooks, equipment |
| Transportation | Travel to/from school |
Loans That Do NOT Qualify
- Loans from family members
- Loans from employer plans
Form 1098-E
Lenders report interest of $600 or more on Form 1098-E.
EA Exam Tips
- MFS cannot claim this deduction
- Maximum is $2,500
- Cannot be a dependent
- Know the phase-out ranges
Test Your Knowledge
For 2024, what is the MFJ MAGI phase-out range for the student loan interest deduction?
A
B
C
D
Test Your Knowledge
Tom files MFS and paid $2,800 in student loan interest. His MAGI is $60,000. What can he deduct?
A
B
C
D
Test Your Knowledge
Which loan would NOT qualify for the student loan interest deduction?
A
B
C
D