Strapped for cash as a recent grad? See if you qualify for a student loan interest deduction.
College is over and you’ve been blasted with a taste of reality…or should I say adulthood? It’s tough but you’ll get through it. Even the IRS is on your side with certain deductions available to those of us who used our after-high school lives to pick up a college education. College is expensive. The student loan interest deduction can help you out a bit. Let’s see if you’re eligible.
Are there income limits?
Here are the income limits that apply to the student loan interest deduction. Note that prior tax years have slightly different income limits:
Single filers with a modified adjusted gross income (MAGI) below $80,000 and married couples filing jointly with incomes below $160,000 can take the full deduction.
Taxpayers whose MAGIs are above these limits can only take a reduced deduction or no deduction at all. The deduction phases out between MAGIs of $65,000 and $80,000 for single filers. For married couples filing jointly, the deduction phases out between MAGIs of $130,000 and $160,000. (more…)