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Level 2
posted Jun 4, 2019 6:25:31 PM

Allocation of student loan interest deduction between two states

I paid over $6,000 of student loan interest in 2017, but due to my AGI I was only qualified for $2,500 federal deduction. 

I lived and worked in MD for the first half of the year and moved to CA for a new job. When I allocate the student loan interest deduction, should I allocate $1,250 to each state? Or should I allocate $2,500 to each because I paid $6,000 interest? I'm reporting partial residence in both states so I assume I shouldn't allocate the full amount to each. Thanks!

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1 Best answer
New Member
Jun 4, 2019 6:25:32 PM

You would allocate the student loan interest based on the days that you were a part year resident of each state. So if in MD for 6 months then in CA for 6 months, allocate $1,250 to each state. (You cannot allocate more in total than is allocated as a federal deduction (federal max is $2,500)).

1 Replies
New Member
Jun 4, 2019 6:25:32 PM

You would allocate the student loan interest based on the days that you were a part year resident of each state. So if in MD for 6 months then in CA for 6 months, allocate $1,250 to each state. (You cannot allocate more in total than is allocated as a federal deduction (federal max is $2,500)).