Hello,
The MAGI calculation on the Student Loan Interest Deduction worksheet appears to be taking the adjusted gross income and adding back the $10,200 unemployment compensation exclusion to arrive at MAGI. This is producing a MAGI that is higher than it should be and is reducing the student loan interest deduction. I have looked on IRS website and this does not seem to match the information there. Can anyone please confirm how the MAGI should be calculated on the Student Loan Interest Deduction worksheet. Thank you.
Include the full amount of your unemployment compensation from Schedule 1, line 7 when figuring the following deductions or exclusions from income. See the specific form or instructions for more information. If you file Form 1040-NR, you aren’t eligible for all of these deductions. See the Instructions for Form 1040-NR for details.
Taxable social security benefits (Instructions for Form 1040 or 1040-SR, Social Security Benefits Worksheet)
IRA deduction (Instructions for Form 1040 or 1040-SR, IRA Deduction Worksheet)
Student loan interest deduction (Instructions for Form 1040 or 1040-SR, Student Loan Interest Deduction Worksheet)