Unfortunately, you are still limited by the amount of $2,500 per year, no mater the amount paid.
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.
- For more information about the
student loan interest deduction and how your MAGI affects the deduction amount,
refer to IRS Publication 970.
