If you paid interest on qualified student loans in 2025, you may be eligible to claim a deduction for that interest—even if you do not itemize deductions.
What’s Deductible?
- Up to $2,500 of student loan interest paid during the year
- Applies to loans used to pay for qualified education expenses for:
- Yourself
- Your spouse
- Your dependent
Requirements:
- You must be legally obligated to repay the loan
- Your Modified Adjusted Gross Income (MAGI) must be below the phase-out limits:
- $75,000 for Single
- $155,000 for Married Filing Jointly
- You cannot be claimed as a dependent on someone else’s return
Documentation:
- You should receive Form 1098-E from your loan servicer
- Box 1 shows the amount of interest paid
- Multiple forms may be issued if you have more than one loan servicer
Where to Enter:
- Federal Section
- Deductions → Select My Forms
- Adjustments to Income → Student Loan Interest