Student Loan Interest Deduction
College graduates or their families can deduct student-loan interest payments. The tax deduction is available even if the taxpayer does not itemize other deductions. The loan does not have to be federally guaranteed or subsidized to be eligible for the deduction, but it must be used to pay education expenses such as tuition, fees, books, and room and board and meet all other requirements. The maximum deduction is $2,500. It is phased out for married taxpayers with a modified adjusted gross income (MAGI) between $100,000 and $130,000, and single taxpayers with a MAGI between $50,000 and $65,000. Beginning in the tax year 2003, the income ranges for phasing out the student loan interest deduction may be adjusted annual for inflation.
FOR MORE INFORMATION ON EDUCATIONAL TAX AND SAVINGS OPTIONS, VISIT THE FOLLOWING WEB SITES:
- Internal Revenue Service, Publication 970, Tax Benefits for Higher Education www.irs.gov/pub/irs-pdf/p970.pdf
- TCRS Tax Credit Reporting Service http://tcrs.com
- For general information on TRA97 or to view/print a copy of your University of Alabama 1098-T go to www.1098T.com