I'm on the student loan interest deduction section and it says I get to deduct all $537 of my interest paid 2017, but only adds $75 to my federal return. Is that right?

cms233 · ‎June 4, 2019

Lisa995 · ‎June 4, 2019

Its a deduction from income. It lowers your income by $537, that's not a refunded amount., $75 additional refund on a $527 reduction of income sounds reasonable.

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Lisa995 · ‎June 4, 2019

Its a deduction from income. It lowers your income by $537, that's not a refunded amount., $75 additional refund on a $527 reduction of income sounds reasonable.

♪♫•*¨*•.¸¸♥Lisa♥ ¸¸.•*¨*•♫♪

MinhT · ‎June 4, 2019

Yes, this sounds right.

The student loan interest deduction is a deduction which reduces your taxable income, and not a credit which reduces your tax liability dollar for dollar.

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I'm on the student loan interest deduction section and it says I get to deduct all $537 of my interest paid 2017, but only adds $75 to my federal return. Is that right?