Things You'll Need:
- Calculators
- Computers
- Tax Preparation Software
- Calculators
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Step 1
Verify that you are not anyone's dependent.
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Step 2
Verify that you are not filing under the "married filing separately" status.
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Step 3
Verify that your student loan was not from a relative or from a related trust, partnership or corporation.
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Step 4
Make sure that when you got the loan, you were a student taking at least half a full load in a program designed to lead to a degree, certificate or credential.
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Step 5
Make sure the interest payment you made during the tax year was within the first 60 months of required payments.
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Step 6
Make sure you have the primary responsibility to repay the loan.
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Step 1
Add up all the interest on qualifying student loans that you paid during the tax year. The maximum possible deduction for tax year 1999 is $1,500.
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Step 2
Determine your adjusted gross income and compare it to the income thresholds that begin the phase-out of this deduction. If you're married filing jointly, the threshold is $60,000. For single, head of household or qualifying widow or widower, it is $40,000.
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Step 3
Calculate how much your income is over the income threshold. Round up to the next thousand dollars - $1,001 is rounded up to $2,000.
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Step 4
Subtract $100 from your possible deduction for every $1,000 your income is over the threshold. If your income isn't over the threshold, subtract zero.
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Step 5
Claim the deduction on line 24 of the 1040 or line 16 of the 1040A.
