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?
7. 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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