STUDENT LOAN INTEREST DEDUCTION

Tax deduction seen on interest paid on higher education loans, lower than $2,000 or the actual interest paid, within a tax year in the United States. A taxpayer can claim this deduction if a student loan is taken out solely for paying eligible education expenses, not from a relative or done under a qualified employer plan. The Internal Revenue Service also states the student must be a taxpayer, dependent, or spouse, and enrolled at least half the time in a degree program. The deduction cannot be placed if student’s gross income surpasses $75,000, or $150,000 if submitting a joint tax return with the spouse.

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