Why didn't I get the full capped amount for my Student Loan Interest (1098-E)
I get the following message when I added my 1098-E "You might be wondering why it isn't $10,150. That's because there's a cap of $2,500 for this deduction" But my federal refund only increased by around $500
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1 Best answer
NewGuy
New Member
Jun 5, 2019 10:46:57 PM
The $2,500 is a deduction, not a credit. A deduction lowers your taxable income which lowers your overall tax obligation based on what tax bracket you fall.
1 Replies
NewGuy
New Member
Jun 5, 2019 10:46:57 PM
The $2,500 is a deduction, not a credit. A deduction lowers your taxable income which lowers your overall tax obligation based on what tax bracket you fall.