What are the rules for deducting student-loan interest on my tax return?
Up to $2,500 in student-loan interest can be tax-deductible in 2013 if your modified adjusted gross income is less than $60,000 if you’re single or $125,000 if you are married and file a joint return. The deduction is phased out at higher income levels, disappearing completely if you earn more than $75,000 if single or $155,000 if filing a joint return.
You can take the deduction regardless of whether you itemize deductions. Even if your parents pay the interest on a loan for which you are liable, you can deduct the interest, as long as you are not claimed as a dependent on your parents’ tax return.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
For more information about the tax rules, see IRS Publication 970, Tax Benefits for Education. And for more information about student loans, see our Student Loan Special Report.
-
Stock Market Today: Stocks Gain on Tech, Auto Tariff TalkThe Trump administration said late Friday that it will temporarily halt tariffs on some Chinese tech imports.
-
Sam's Club Plans Aggressive Expansion: Discover Its New LocationsSam's Club expansion plans will open up to 15 new stores each year. Learn where they plan to open in 2025.
-
The American Opportunity Tax Credit (AOTC): How Much Is It Worth?Tax Credits This tax break can help you offset $2,500 in qualifying expenses tied to your higher education. Here's what you need to know.
-
Are Scholarships Always Tax-Free? What You Need to KnowEducation Scholarships are generally tax-free if certain IRS and other requirements are met.
-
Student Loan Forgiveness Blocked For Now Due to Court RulingsBiden's student loan debt forgiveness program is on hold until the U.S. Supreme Court weighs in.
-
529 Plan Contribution Deadlines529 Plans Many states have year-end deadlines for making 529 college savings plan contributions.
-
Biden Extends Student Loan Relief, Is Loan Forgiveness Next?Coronavirus and Your Money On his first day as president, Joe Biden continued the suspension of student loan payments until October.
-
How to Help Grandchildren Pay for CollegePaying for College Follow these tax-saving strategies while gifting money to help fund their education.
-
It’s Not Too Late to Boost Retirement Savings for 2018retirement Some retirement accounts will accept contributions for 2018 up until the April tax deadline.
-
How to Correct a Mistake on Your RMDs from IRAsretirement If you didn't take out the correct required minimum distribution because your brokerage firm made a mistake, the IRS may show some leniency.
