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.

To enter student loan interest in your TaxAct return:

  1. From within your TaxAct return (Online or Desktop), click Federal. On smaller devices, click in the upper left-hand corner, then click Federal.
  2. Click Education in the Federal Quick Q&A Topics menu to expand, then click Student loan interest.
  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 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.

To view the Student Loan Interest Deduction Worksheet:

  1. From within your TaxAct Online return, click Print Center down the left, then click Custom Print.
  2. Click Federal Form 1040 Student Loan Interest - $X.XX Deduction. You may need to scroll down in the section to locate the item.
  3. Click Print, then click the PDF link. Click the printer icon or the save icon (available when you hover your mouse over 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 your return fees 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 Forms in the top left corner of the toolbar to open the Forms View.
  2. Scroll down and click to expand the federal Worksheets folder.
  3. Double-click Form 1040 Student Loan Interest - Student Loan Interest Deduction Worksheet.
  4. Click the Printer icon above the worksheet to print. You can send the output to a printer or a PDF document.

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.