Calculator for claiming student loan interest on taxes

This is a quick calculator for claiming student loan interest on taxes. One can easily know how much can he/she deduct the payments on the qualified student loan interest .The good point about student loan interest deduction is that maximum deduction of $2,500 in student loan interest payments can be claimed regardless of whether you itemize your deductions or take the standard deduction.

result is sent to your mail..

Who are eligible for the student loan interest deduction ?

In following situations , you can not claim deduction on account of interest paid on qualified educational loan

  1. Your (filing status is single, head of household, or qualifying widow) modified adjusted gross income is more than $85,000 and that limit is $170,000 if married and filing a joint return
  2. Your parent or another relative claims you as a dependent on their own taxes
  3. You or your spouse are not legally responsible for repaying the loan (you’re making payments on a loan that your child took out in their own name, for example)
  4. You’re married and filing separate returns

What qualifies for the interest deduction?

Interest paid on a loan borrowed for the sole purpose of paying the qualified educational expenses like -college tuition fee, boarding expense ,text books and supplies -for you, your spouse, or a dependent while attending Colleges, universities, and vocational schools are eligible schools if they are approved to participate in a student aid program administered by the U.S. Department of Education.

Student loan interest deduction phase out 2019

If MAGI or modified adjusted gross income of a taxpayer having status other than “married filing jointly ,is more than $70,000 but less than $85,000 for tax year 2019, then the maximum educational loan interest deduction of $2.500 will be reduced proportionately.In that case the formula to compute the tax deduction for educational loan will be as under :

educational loan interest deduction=(MAGI-70000)*$2500/15000

For , taxpayer filing joint return, the phaseout for year 2019 begins at $140,000 and completely over at $170,000. The formula for computing educational interest deduction is

educational loan interest deduction=(MAGI-140000)*$2500/30000

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