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Level 3

Question about Student Loan Interest Deduction

I graduated from college two years ago but at age 26 I am still paying principal plus interest on student loans during the tax year. I took a full-time academic workload during my college career except for my final year where I took half the full-time workload. My MAGI is 48K; can I claim the student loan interest deduction for up to $2500 in interest paid during this year and up to $2500 in interest for subsequent years until the loan is paid off? 

 

If I understand correctly, as long as it participated in qualified education for a degree or certificate, I can deduct it regardless if I graduated years ago as long as those expenses are still incurred and paying them back?

 

I tried reading the publication but it did not specify where or not it was ok for graduated students.

 

Thank you!

1 ACCEPTED SOLUTION

Accepted Solutions
Level 3

Question about Student Loan Interest Deduction

I found my answer!

 

"Time limit on deduction - The taxpayer can deduct interest paid during the remaining period of the student loan."

3 Comments
Level 3

Question about Student Loan Interest Deduction

I found my answer!

 

"Time limit on deduction - The taxpayer can deduct interest paid during the remaining period of the student loan."

Community Manager

Question about Student Loan Interest Deduction

Thank you for updating the community, @pnwcommtax! Glad you found your answer!

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Level 9

Question about Student Loan Interest Deduction

You can continue to take the deduction for the amount of student loan interest you pay each year, after you have graduated and until the loans are paid off.  The amount you can deduct is limited by your Adjusted Gross Income.

For 2018, the maximum amount that you can deduct for interest paid on student loans remains $2,500. Phaseouts apply for taxpayers with MAGI in excess of $65,000 ($135,000 for joint returns) and is completely phased out for taxpayers with MAGI of $80,000 or more ($165,000 or more for joint returns)