Student Loan Interest Deduction Calculator

The maximum is $2,500 of student loan interest per tax year, regardless of how much you actually paid. The deduction is above-the-line — you take it whether or not you itemize. It phases out as your modified AGI rises through a $15k window for single filers ($85k-$100k for 2026) or a $30k window for joint filers ($175k-$205k for 2026).

For 2026, the deduction is fully available if your MAGI is below $85,000 (single/HoH) or $175,000 (married jointly). It linearly phases out and disappears entirely at $100,000 single or $205,000 joint. Source: IRS Rev. Proc. 2025-32 §3.21.

No. IRC §221(e)(2) explicitly disallows the student loan interest deduction for any taxpayer filing as Married Filing Separately. This is true regardless of MAGI level — even MFS taxpayers with very low income cannot claim it.

MAGI for §221 purposes is your AGI (Form 1040 line 11) plus the foreign earned income exclusion (Form 2555) and a few other addbacks per §221(b)(2)(C). For most filers it equals AGI exactly. Critically, the $2,500 student loan interest deduction is itself NOT subtracted before computing MAGI — you compute MAGI as if you weren't claiming it.

A "qualified education loan" under IRC §221(d) means debt taken solely to pay qualified higher education expenses for the taxpayer, spouse, or dependent at an eligible institution, used within a reasonable period (typically 90 days before or after disbursement). This includes federal Direct, FFEL, Perkins, Parent PLUS, and most refinanced private loans. Loans from a related party (parent's loan from grandparent) do NOT qualify.

Schedule 1 (Form 1040), line 21 — "Student loan interest deduction". The lender sends you Form 1098-E for any year you paid $600 or more in interest; you can also use your year-end statement if you paid less. The amount flows from Schedule 1 to Form 1040 line 10 as an adjustment to gross income.

No double-dipping. Under SECURE Act 2.0 / CARES Act provisions, employers can pay up to $5,250/year of an employee's student loan interest tax-free. But the employee cannot also claim a §221 deduction for the same interest. Only out-of-pocket interest you actually paid (not what your employer paid on your behalf) counts toward the $2,500 cap.