# Did student loan interest deduction get eliminated?

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Video answer: Taxes

## Top best answers to the question Â«Did student loan interest deduction get eliminatedÂ»

On March 13, 2020, President Trump suspended federal **student loan** payments, interest-free, indefinitely during the coronavirus crisis.

So, for example, if you are in the 22% tax bracket and claim a $2,500 deduction, the deduction would reduce your federal income tax for the year by $550. **On March 13, 2020, President Trump suspended federal student loan payments, interest-free, indefinitely during the coronavirus crisis**.

FAQ

Those who are looking for an answer to the question Â«Did student loan interest deduction get eliminated?Â» often ask the following questions:

### đź’° Did student loan interest deduction change?

The **student loan interest deduction** allows you to deduct up to $2,500 on your federal income tax return for the **loan interest** you paid during the yearâ€¦ You do not need to itemize to get the deduction. You can claim the **standard deduction** and the student loan interest deduction.

- How much is student loan interest deduction?
- Is student loan interest an itemized deduction?
- Is student loan interest deduction on standard?

### đź’° Are student loan interest deduction in california?

College student tax deductions include the following: Student Loan Interest Deduction â€“ This is a federal tax deduction which enables eligible students to deduct as much as $2,500, depending on how much they paid in student loan interest. Tuition and Fees Deduction â€“ This is also a federal tax deduction.

- Is student loan interest from agi deduction?
- What is a student loan interest deduction?
- What line is student loan interest deduction?

### đź’° Can parents claim student loan interest deduction?

If your parents made payments on your cosigned student loan, however, they could claim a deduction for this debt. You must meet income requirements. You canâ€™t claim the student loan interest deduction if you earn more than the limit specified annually.

- Are student loan interest deduction tax forms download?
- Are they cutting out student loan interest deduction?
- Does maine allow a student loan interest deduction?

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We've handpicked 27 related questions for you, similar to Â«Did student loan interest deduction get eliminated?Â» so you can surely find the answer!

How do you calculate student loan interest deduction?- Take your MAGI and subtract $70,000 â€” or $140,000 if youâ€™re married and filing jointly.
- Divide that figure by $15,000 â€” or $30,000 if youâ€™re married and filing jointly.
- Multiply that resulting figure by your original
**student loan interest deduction**. - Subtract the resulting figure from your original student loan interest deduction.

- Review your Form 1098-E. Form 1098-E is a relatively short documentâ€¦ Make sure you're qualified for a deduction. Just because
**you**made**student loan interest**repayments doesn't necessarily mean you're qualified for a deduction.**Calculate**your deductionâ€¦ Enter your deductionâ€¦

Unlike most other deductions, the student loan interest deduction is claimed as **an adjustment to income** on Internal Revenue Service (IRS) Form 1040.

- Your income: This tax deduction is phased out at $85,000 modified adjusted gross income (MAGI) for single filers and $170,000 MAGI for filers who are married and filing jointly. Filing status: You canâ€™t claim the student loan interest deduction if youâ€™re claimed as a dependent on someone elseâ€™s return or if youâ€™re married but filing separately.

#### $2,500

As noted, you can currently deduct up to**$2,500**of the interest you paid on an eligible student loan. If you paid less than that, your deduction is capped at the amount you paid. If you paid more than $600 in interest for the year, you should receive a Form 1098-E from the lending institution.

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What is the max student loan interest deduction?#### $2,500

The student loan interest deduction is a federal income tax deduction that allows you to subtract up to**$2,500**of the interest you paid on qualified student loans from your taxable income. 1ď»ż It is one of several tax breaks available to students and their parents to help pay for higher education. When does the student loan interest deduction end?

- The deduction is gradually reduced and eventually eliminated by phaseout
**when your**modified adjusted gross income (MAGI) amount reaches the annual limit for**your**filing status.**You**claim this deduction as an adjustment to income, so you don't need to itemize your deductions.

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Where to find 456 student loan interest deduction?- If you file a Form 2555, Foreign Earned Income , Form 4563, Exclusion of Income for Bona Fide Residents of American Samoa, or if you exclude income from sources inside Puerto Rico, refer to Worksheet 4-1,
**Student Loan Interest Deduction**Worksheet in Publication 970 instead of the worksheet in the Instructions for Form 1040 and Form 1040-SR.

- However, when
**you**begin repaying these loans,**you**may qualify**for**a student loan interest deduction if your**income**is not too high and you use the funds only for school-related expenses while in college. Many states offer additional financial assistance**to**students who submit a FAFSA.

The Federal government and **New York State** offer tax credits for qualified undergraduate postsecondary study, as well as a **tax deduction** for the initial interest paid on qualified loans.

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How is the student loan interest deduction phased out?- Deduction Phaseouts The student loan interest deduction is reducedâ€”or phased outâ€”in part or entirely for taxpayers with certain levels of modified adjusted gross income (MAGI). If you fall in the middle range of incomes and your deduction is reduced by the phaseout, you will need to calculate the amount you can deduct.

- Student loan interest deduction. The tax benefits of your student loan donâ€™t end with these tax credits. A deduction is also available for the interest payments you make when you start repaying your loan.

- The denominator is $15,000 ($30,000 in the case of a joint return). Subtract the result from your deduction (before the phase-out) to give
**you**the amount**you can deduct**.". Unfortunately, your**student loan interest**isn't deductible at all if your income is more than the ceiling where the phase-out ends.

For 2020 taxes, which are to be filed in 2021, the maximum student loan interest deduction is **$2,500** for a single filer, head of household, or qualifying widow or widower with a modified adjusted gross income of less than $70,000.

**Student Loan Interest Deduction**Phase-Outs Filing Status Phase-out Begins Phase-out Ends Married Filing Jointly $140,000 $170,000 Qualifying Widow (er) $70,000 $85,000 Head of Household $70,000 $85,000 Single $70,000 $85,000

- Changes were also made to certain tax deductions, deferrals & exclusions for 2017. You'll find some of the most common here:
**Student**Loan Interest Deduction. For 2017, the maximum amount that you can take as a deduction for interest paid on**student loans**remains at $2,500.

#### Claiming the deduction

And that also means you can**deduct student loan interest**even if you claim the

**standard deduction**on your tax return. In general, the deduction for

**student loan interest**is limited to $2,500 or the total amount of interest you paid, whichever is lower. When does the student loan interest deduction phase out?

**If you**'re a married couple filing jointly,**you can**claim the full**student loan interest**deduction with a MAGI of up to $140,000. From there, the credit starts to phase out and disappears once your MAGI exceeds $170,000. 7. Charitable donations Normally, deductions for charitable donations are only available to filers who itemize.

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When is the student loan interest deduction phased out?- The
**student loan interest**deduction is reduced or eliminated entirely for higher-income taxpayers. For**tax**year 2020, the amount of your student loan interest deduction is gradually reduced (phased out) if your MAGI is between $70,000 and $85,000 ($140,000 and $170,000 if you file a joint return).

If you paid more than $600 in interest charges on your student debt in 2019, you'll get **a 1098-E** outlining the student loan interest you paid. Using the info from your 1098-E, you can claim your student loan interest deduction for 2019 and get the full benefit you're entitled to.

People at higher incomes may not be able to claim the student loan interest deduction, or their deduction may be reduced. As of 2020, these income rules applied: **Single tax filers with a modified adjusted gross income, or MAGI, of $85,000 or more** could not claim the deduction.

**You**cannot claim the deduction if you are married but filing separately.**How much**of the deduction**you can**claim, if**you can**claim anything, also depends on your income. Individuals who**you can**claim as dependents for the**student loan interest**deduction are the same as who you can claim as dependents for the rest of your tax return.

- And that also means
**you can**deduct**student loan interest**even if**you claim**the standard deduction**on**your tax return. In general, the deduction for student loan interest is limited to $2,500 or the total amount of**interest you**paid, whichever is lower.