Tax Tip #316

Eligible borrowers can deduct up to $2,500 of interest paid on qualified student loans during the year. 

Qualifications: 

• Modified adjusted gross income is less than $100,000 if single, head of household and $200,000 if married filing jointly 
• Married filing separately cannot claim the deduction 

The loan provider reports the interest paid on Form 1098-E, Student Loan Interest Statement.