If you paid interest on a student loan during the 2026 tax year, you may be able to claim the Student Loan Interest Deduction on your federal tax return. This deduction lets eligible taxpayers deduct up to $2,500 of qualified student loan interest paid during the year, which can lower taxable income even if they don't itemize deductions. Topic no. 456, Student loan interest deduction
Eligibility Requirements
You can claim the Student Loan Interest Deduction if all of the following apply:
- You paid interest on a qualified student loan during the tax year.
- You are legally obligated to repay the loan and the interest.
- Your filing status is not Married Filing Separately.
- Your Modified Adjusted Gross Income (MAGI) falls below the applicable income limits.
- Neither you nor your spouse (if filing jointly) can be claimed as a dependent on someone else's tax return.
What Is a Qualified Student Loan?
A qualified student loan is generally a loan taken out solely to pay qualified higher education expenses for:
- You
- Your spouse
- A dependent who was your dependent when the loan was obtained
The loan must be used for eligible education expenses incurred within a reasonable period before or after the loan is issued. Certain government-sponsored and school-sponsored student loans may also qualify. Topic no. 456, Student loan interest deduction
Student Loan Interest Deduction Income Limits for Tax Year 2026
The deduction is gradually reduced, or phased out, as your income increases.
Single Filers
- Phaseout begins when MAGI exceeds $85,000.
- The deduction is completely phased out at $100,000 MAGI.
Married Filing Jointly
- Phaseout begins when MAGI exceeds $170,000.
- The deduction is completely phased out at $200,000 MAGI.
If your income falls within the phaseout range, you may still qualify for a partial deduction.
Do I Need Form 1098-E?
Most borrowers who paid $600 or more in student loan interest during the year receive Form 1098-E, Student Loan Interest Statement, from their loan servicer. The amount reported in Box 1 is generally the amount used to calculate the deduction. If you have loans with multiple servicers, you may receive more than one Form 1098-E. Topic no. 456, Student loan interest deduction
Please Note
The Student Loan Interest Deduction is an adjustment to income, which means you can claim it whether you take the standard deduction or itemize deductions. However, if your MAGI exceeds the phaseout limits for your filing status, you won't be eligible to claim the deduction. Topic no. 456, Student loan interest deduction