When I enter my wife's student loan expenses, it totals $1,234 of 'interest deductions,' but our Federal Taxes Due only decreases by $322. Why is this?

caelenm — Thu, 06 Jun 2019 10:02:37 GMT

Your student loan interest is an adjustment to income, so...

LindaA — Thu, 06 Jun 2019 10:02:39 GMT

Your student loan interest is an adjustment to income, so it lowers your taxable income. It is not deducted from your tax liability.

Student loan interest and other adjustments are deducted from your total income. The result is your adjusted gross income (AGI). Your personal exemptions and standard deduction (or itemized deductions) are subtracted from your AGI. The result is your taxable income. Your tax liability is based on this value.

topic When I enter my wife's student loan expenses, it totals $1,234 of 'interest deductions,' but our Federal Taxes Due only decreases by $322. Why is this? in Education

When I enter my wife's student loan expenses, it totals $1,234 of 'interest deductions,' but our Federal Taxes Due only decreases by $322. Why is this?

Your student loan interest is an adjustment to income, so...