Am I getting a return for my 2016 student loan interest?

[ocush_18]

I paid about $1022 in student loan interest in 2016, but I noticed it didn't change my federal refund amount at all. Is that correct? Last year I got more money back for the interest I had paid. Thank you.

[Texas Roger · Accepted solution]

Up to $2500 of student loan interest paid can be entered as an adjustment to income. An adjustment to income reduces your adjusted gross income which then reduces your taxable income. If your taxable income is already $0 before entering the adjustment, you get no tax benefit because you can't reduce your taxable income below $0. Last year you may have had taxable income without the adjustment from the student loan interest. 

One other thing. If you are filing a married filing separately tax return, you can't deduct the student loan interest.