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Education
Yes, you can and should deduct your student loan interest even if it was paid by your employer. See qualifications below.
How much can I deduct?
- You may deduct the lesser of $2,500 or the amount of interest you actually paid during the year.
- The deduction is gradually reduced and eventually eliminated by phaseout when your modified adjusted gross income (MAGI) amount reaches the annual limit for your filing status.
Qualifications:
You can claim the deduction if all of the following apply:
- You (or your employer) paid interest on a qualified student loan in tax year 2018;
- You can take the deduction as a student, or as a parent making payments on your dependent student’s loan. However, you or your spouse, if filing jointly, can't be claimed as dependents on someone else's return.
- You're legally obligated to pay interest on a qualified student loan;
- Your filing status isn't married filing separately; and
- Your MAGI is less than a specified amount, which is set annually.
June 5, 2019
11:24 PM