If you paid interest on a qualified student loan during 2026, you may be able to deduct some or all of that interest on your federal tax return. The best part? This is an adjustment to income, which means you can claim it even if you don't itemize your deductions.
How Much Student Loan Interest Can I Deduct?
You can deduct the lesser of:
- Up to $2,500 in qualified student loan interest paid during the year, or
- The actual amount of interest you paid
This deduction can help lower your taxable income and potentially reduce the amount of tax you owe.
What Loans Qualify?
The loan must have been used to pay qualified education expenses for:
- Yourself
- Your spouse
- Your dependent
You must also be legally obligated to repay the loan.
Who Is Eligible?
You may qualify for the student loan interest deduction if:
- You paid interest on a qualified student loan during the tax year.
- Your filing status is not Married Filing Separately.
- You cannot be claimed as a dependent on someone else's tax return.
- Your Modified Adjusted Gross Income (MAGI) falls within the IRS income limits.
Based on current IRS guidance, the deduction begins to phase out when MAGI exceeds $85,000 for Single filers and $170,000 for Married Filing Jointly. The deduction is completely phased out at $100,000 for Single filers and $200,000 for Married Filing Jointly.
What Documents Do I Need?
Most taxpayers receive Form 1098-E, Student Loan Interest Statement, from their loan servicer.
- The amount of deductible interest is reported in Box 1.
- If you have loans with multiple servicers, you may receive more than one Form 1098-E.
- Generally, a Form 1098-E is issued if you paid $600 or more in student loan interest during the year.
Where Do I Enter Student Loan Interest in the Software?
Navigate to:
- Federal
- Deductions (Select my forms)
- Adjustments to Income
- Student Loan Interest
Enter the amount from your Form 1098-E, and we'll calculate any deduction you're eligible to claim.