According to the IRS, you can deduct the lesser of $2,500 or the amount of interest you paid during the year from student loans. This deduction can be claimed as an adjustment to income, which means that the deduction does not need to be itemized.
To claim a student loans interest deductions the following must apply to you:
- Paid interest on qualified student loan in 2017 tax year
- Have a legal obligation to pay interest on a student loan
- Filing status is not married filing separately
- MAGI is less that a certain amount(changes annually)
- If you file jointly with a spouse, you can’t be claimed as dependents on someone else’s return
A student loan qualified for deduction must be one that was taken out to pay education expenses for:
- you, your spouse, or someone who was your dependent when the loan was taken
- education provided during academic period for an elligible student
- a loan paid within a reasonable time period after the loan was taken
You can contact Miami Tax Expert to see if you are eligible to receive a deduction on your student loans.