Education & Work-Related Expenses
Question: What are the limits for deducting interest paid on a student loan?
The maximum deductible interest on a qualified student loan is $2,500 per return.
There is no deduction if any one of the following is true:
- You file as married filing separately,
- You are claimed as an exemption on someone else’s return,
- The loan is from a related party or a qualified employer plan,
- You are not legally obligated to pay interest on a qualified student loan, or
- You did not pay interest on a qualified student loan.
There are limits based on your filing status and adjusted gross income.
Category: Itemized Deductions, Standard Deductions
Subcategory: Education & Work Related Expenses