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Student Loan Interest Deduction Calculator

The Student Loan Interest Deduction Calculator helps you determine if you’re eligible for the student loan interest deduction on your tax return. If you’re eligible for this tax deduction, the calculator will display how much your refund could be worth due to this tax deduction based on your income and how much interest you paid.

Results
Your deduction
Your actual tax benefit

If you aren’t ready to plug in all the numbers, this flowchart can help you get a sense of whether you qualify in the first place. Use this along with the FAQ below to learn more about how the student loan interest deduction works and how you can best use our calculator to see how much you might get back from Uncle Sam.

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Student Loan Interest Deduction Calculator FAQs

1. If someone else made payments on my loans on my behalf, can I claim this deduction?

Yes, you can.

According to the Internal Revenue Service (IRS), “If you are the person legally obligated to make interest payments and someone else makes a payment of interest on your behalf, you are treated as receiving the payments from the other person and, in turn, paying the interest.”

2. What is modified adjusted gross income (MAGI)?

MAGI is similar to your adjusted gross income (AGI). However, MAGI is calculated without some of the adjustments included in AGI.

For most taxpayers, the values for AGI and MAGI should be close in value.

3. How do I find or calculate my MAGI?

Calculating your MAGI can be tricky.

The only reliable way to calculate it accurately is by completing your tax return, or by following all the instructions from the IRS for calculating your MAGI.

Your MAGI is typically less than your gross income. So if your finances haven’t changed much, you may be able to estimate your MAGI based on the last tax return you filed.

4. How does my MAGI affect my eligibility for this deduction?

There are income limitations for those looking to claim this deduction. The following limitations are:

  • Taxpayers with a MAGI of no more than $65,000 (filing single) or $130,000 (married filing jointly) are eligible for the full $2,500 deduction.
  • Taxpayers with a MAGI more than $65,000 but less than $80,000 for single filers (or more than $130,000 but less than $160,000 when married filing jointly) are eligible for a partial deduction.
  • Taxpayers with a MAGI equal to or greater than $80,000 (filing single) or $160,000 (married filing jointly) are not eligible.

5. How do I find out how much student loan interest I paid?

If you paid more than $600 in qualifying interest, your student loan servicer is required to send you a 1098-E for (or equivalent) to tell you how much interest you paid.

If you did not receive this form, reach out directly to your servicer to find out how much interest you paid.

6. Can I still claim this deduction if I didn’t receive a 1098-E form?

Yes. If you do not receive a 1098-E, you can still claim the deduction. You can find the total amount of interest that you paid on your account statements.

7. What types of student loan interest qualify for this deduction?

Remember that there is more to deductible student loan interest than amount you hand over with each monthly payment. In addition, you may also include the following costs to your interest deduction:

Loan origination fee. If you paid a one-time loan origination fee at the time you took the loan, that money could potentially be included in your deduction. In order to include this fee, you must treat it as interest accrued over the life of the loan.

For instance, if you took out a $10,000 loan, from which 3% was withheld as an origination fee, and you have 60 months to repay the loan, you could treat $5 per month as deductible interest ($300/60 months = $5 per month).

Capitalized interest. If unpaid interest is added by the lender to your outstanding principal balance, that is considered capitalized interest and it can be deducted.

For example, if you deferred payments on your student loan but continued to accrue your interest during the deferral, the accrued interest can be deducted once you begin making payments again. In that case, the IRS considers your principal payments to be interest payments until the “balance” of capitalized interest is zero.

Interest on refinanced and consolidated loans. The interest you pay on loans that have been refinanced in any way is considered deductible.

Voluntary interest payments. If you make interest payments even if they are not required – for example, if you do so during a grace period or during a deferment – you may still deduct that student loan interest.

8. Is there a cap on the student loan interest deduction?

The maximum amount of student loan interest you may deduct is $2,500. This means that anyone who pays more than $2,500 in student loan interest is out of luck for the additional amount.

9. Can I use the results from this calculator on my tax return?

Everyone’s tax situation is different. While this calculator should give you an estimate of your tax refund, you should consult a tax professional when filing your taxes.

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Student Loan Hero Advertiser Disclosure

Our team at Student Loan Hero works hard to find and recommend products and services that we believe are of high quality and will make a positive impact in your life. We sometimes earn a sales commission or advertising fee when recommending various products and services to you. Similar to when you are being sold any product or service, be sure to read the fine print, understand what you are buying, and consult a licensed professional if you have any concerns. Student Loan Hero is not a lender or investment advisor. We are not involved in the loan approval or investment process, nor do we make credit or investment related decisions. The rates and terms listed on our website are estimates and are subject to change at any time. Please do your homework and let us know if you have any questions or concerns.