Based on the Modified Adjusted Gross Income (MAGI) on a return, the student loan interest deduction allowed on the return may be phased out or eliminated. The TaxAct program automatically calculates the eligible amount of student loan interest deduction for the return, based on the student loan interest expense entered in the program (in conjunction with the amount of modified adjusted gross income reflected on the return). The supporting calculations are in the Student Loan Interest Deduction Worksheet. Below are the steps to enter the student loan interest and then the steps to view the worksheet.
If you paid a lender more than $600 in interest, you should receive a Form 1098-E that lists your total interest payments to that lender. For additional information, see Student Loan Interest Deduction in IRS Publication 970 Tax Benefits for Education.
Note. If you see a message indicating you have not paid your return fees, click the View/Pay link, which will direct you through the Paper Filing steps. Continue through the screens until you have processed the payment for your product fees and then repeat the steps to print.
This worksheet mirrors the IRS calculations as explained in IRS Publication 970 Tax Benefits for Education.