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cms233
New Member

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?

 
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Lisa995
Level 12

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?

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♥ ¸¸.•*¨*•♫♪

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2 Replies
Lisa995
Level 12

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?

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
Expert Alumni

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?

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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