DawnC
Expert Alumni

Education

Since student loan interest is deducted 'above the line', the deduction is taken before calculating adjusted gross income (AGI).    Both Indiana and Illinois start the tax calculation with federal AGI, so the student loan interest deduction will be deducted on those state returns.  

 

If you take the deduction on your federal return, you will get it on both state returns also.  

 

You can deduct student loan interest from a foreign country, as long as the loan meets the requirements of being a student loan, on your federal return, so it will be a deduction on state returns that start with federal AGI. 

 

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