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Anonymous
Not applicable

Student loan interest deduction

During deductions, it states that the entire interest paid is deductible, but only a very small amount of Federal Taxes Due is actually subtracted (about 4%). Why isn't the entire interest paid subtracted from the Due amount shown?
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1 Reply
Carl
Level 15

Student loan interest deduction

The interest you pay is not a credit for your tax liability. The interest you pay is deducted from your taxable income, thus reducing your tax liability.

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