Deducting Student Loan Interest Code Section 221 – Paul Gaulkin CPA

Interest payments made on student loans are deductible for adjusted gross income or “above the line”. This means that a taxpayer can deduct the interest whether or not he or she has chosen to itemize deductions for the tax year. For 2012, eligible taxpayers may deduct up to $2,500 of interest expense on a qualified education loan under Code Section 221. Deduction Phase Out The deduction begins to phase out for single taxpayer with adjusted gross income between $60,000 and … Read more