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.
If you paid a lender more than $600 in interest, you should receive a Form 1098-E Student Loan Interest Statement 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.
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Note. This worksheet mirrors the IRS calculations as explained in IRS Publication 970.
Note that any link in the information above is updated each year automatically and will take you to the most recent version of the document at the time it is accessed.