DawnC0
Intuit Alumni

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.

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