Student loan interest is deductible. Penalties are not deductible.
Any payments that you make on your student loans will consist of principal and interest. The interest
portion, up to a maximum of $2,500.00, is deductible from your income.
Your loan servicer should provide you with a copy of Form 1098-E
by January 31 of each year, indicating the amount of interest paid on your
student loan the previous year. Enter this information into TurboTax and your
deduction will be calculated.
