Student Loan Interest Deduction: IRS Guide to Tax Savings
By IRS Tax Education Office | 5 min read
Save up to $2,500 annually on taxes with the student loan interest deduction. IRS guidelines and income limits explained.
The IRS allows deduction of student loan interest up to $2,500 annually. Here's how to maximize this tax benefit: You can deduct interest paid on qualified student loans for higher education expenses. This includes both federal and private student loans used for tuition, fees, room and board, books, supplies, and equipment. The deduction phases out for higher incomes: Single filers $70,000-$85,000, Married filing jointly $145,000-$175,000. Keep detailed records of interest payments and use Form 1098-E from your loan servicer.\n\n**Related Resources**\n- [Financial Planning Tools](/tools)\n- [Budget Calculator](/budget-planner)\n- [Credit Guide](/category/Debt%20%26%20Credit)\n- [Money Saving Tips](/category/Save%20Money)