How to Claim Student Loans
The Internal Revenue Service allows taxpayers to claim a tax deduction for student loan interest paid during the year. The IRS classifies this deduction as an adjustment to income, meaning it can be claimed on top of the standard deduction. However, in order to claim the deduction, your modified adjusted gross income must fall below the annual limits ($75,000 maximum for single filers, $150,000 maximum for joint filers as of 2010). Student loan interest can be claimed for loans that you took out to pay for education for yourself, your spouse or a dependent as long as the student was enrolled at least half-time.
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Instructions
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Check your form 1098-E to find the amount of interest you paid on your student loan. Your lender will send you this form at the end of the year.
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File your taxes using form 1040 or 1040A. You cannot claim the student loan interest deduction if you use form 10040EZ to file your income taxes.
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Report the amount of interest paid on your student loans, up to the annual maximum, on the appropriate line of your income tax return. As of the 2009 tax year, the most you can deduct is $2,500. The deduction is reported on either line 18 of form 1040A or line 33 of form 1040. In either case, this amount will reduce your total taxable income.
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