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Why did my federal refund decrease so much when I put in the student loan interest I paid?
My federal refund was at a couple hundred dollars and then when I put in the student loan interest that I paid my AZ refund went up, but my federal refund went down to $52. Why is that?
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June 4, 2019
2:14 PM
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Education
Only $2,500 of student loan interest can be reported on a federal tax
return.
The student loan interest is entered as an Adjustment to
Income, not a tax refund or credit.
An adjustment to income reduces the Adjusted Gross Income thereby reducing the amount of taxable income.
June 4, 2019
2:14 PM