Student Loan Interest Deduction Worksheet

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.

To enter student loan interest in your TaxAct return:

  1. From within your TaxAct return (Online or Desktop) click Federal. On smaller devices, click the menu icon in the upper left-hand corner, then select Federal.
  2. Click Education to expand the category, then click Student loan interest in the Federal Quick Q&A Topics menu
  3. The program will proceed with the interview questions for you to enter or review the appropriate information

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.

To view the Student Loan Interest Deduction Worksheet:

  1. From within your TaxAct Online return, click Print Center in the left column.
  2. Click Custom
  3. Click the checkbox(es) to the left of the item(s) Federal Form 1040 Student Loan Interest - $X.XX Deduction. You may need to scroll down in the section to locate the item. 
  4. Click Print and then click the PDF link. Click the printer icon or the save icon (available when you hover your mouse over the bottom of the PDF form) to print or save the PDF copy.

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.  

  1. Click the Forms button in the top left corner of the toolbar to open the Forms View
  2. Scroll down and expand the federal Worksheets folder
  3. Double click Form 1040 Student Loan Interest - Student Loan Interest Deduction Worksheet
  4. Click on the Printer Icon above the worksheet to print.  You are able to choose if you wish to send the output to a printer or a PDF document. 

This worksheet mirrors the IRS calculations as explained in IRS Publication 970 Tax Benefits for Education.