Why am I only deducting $368 from student loans when I paid $2660 in interest to student loans this year?

[cranmerkevin]

I entered my 1098-E which says I paid $2660.42 in interest for student loans in 2024. But when I look my tax overview from TurboTax, I see "You also had a $368 deduction for student loan interest.". Why aren't I deducting $2500?

[Hal_Al]

The usual reason:

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).