I paid student loan interest, why does it say I don't qualify for the deduction

[scoot11301]

I paid interest on parent plus loan.

[xmasbaby0]

https://www.irs.gov/help/ita/can-i-claim-a-deduction-for-student-loan-interest

[Vanessa A]

In order to qualify for the student loan interest deduction the following must apply:

• You cannot be married filing separately
• Neither you nor your spouse can be claimed as dependents on someone else's return
• Your Modified Adjusted Income must be less than $95,000 if not married and less than $195,000 if you are married

If you  meet the criteria to claim the student loan interest deduction, then you can go back and revisit your answers to be sure they are correct. 

The student loan interest deduction is a deduction, not a credit.  This means it can reduce your taxable income, but not below $0.  You may not notice a difference in your tax refund, if you already had no tax liability. 

Student Loan Interest Deduction

Credits and Deductions

[JOlsNutz]

I think this is crazy! - you pay the same as everyone else there should be no cap on why I don't qualify for this deduction. I mean come on, the interest rate itself is nutz and I can't even knock the principal down because the interest rate is so high, and because now I'm in a different tax bracket to try and pay this off, which I can't, it's not even a deduction anymore.  Come on congress.  you really need to make a change.  Unfortunately Biden is no longer in office to try and fight for us.  Thanks all.

[rsm2]

The responder's answer is not correct.  None of the tax programs are allowing the deduction for student loans.  What changed in 2024?

[BrittanyS]

The IRS shows the MAGI limits on its website under "What's new."  Per the IRS, "For 2024, the amount of your student loan interest deduction is gradually reduced (phased out) if your MAGI is between $80,000 and $95,000 ($165,000 and $195,000 if you file a joint return). You can’t claim the deduction if your MAGI is $95,000 or more ($195,000 or more if you file a joint return). See chapter 4."  See the link below provided by the IRS on the requirements for the Student loan deduction:

• Publication 970

@rsm2 

[rsm2]

Seems there was a bug in the tax program.

[BrittanyS]

To qualify for the student loan interest deduction, you must meet the following criteria:

• Not filing a married filing separate return
• Not be claimed as a dependent on someone else's return
• The Modified Adjusted Gross Income (MAGI) is below $80,000, not exceeding $95,000 ($165,000 and $195,000 if married filing jointly).  

Per the IRS, "The amount of your student loan interest deduction is gradually reduced (phased out) if your MAGI is between $80,000 and $95,000 ($165,000 and $195,000) if you file a joint return).  You can't claim the deduction if your MAGI is $95,000 or more ($195,000 or more if you file a joint return).

See the link below for more information on the Student loan deduction:

• Publication 970

@rsm2