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If you're repaying a student loan, it's likely that you're eligible for a student loan interest tax deduction. This calculator from Student Loan Hero helps estimate how much you could potentially receive back.
As long as your income meets the necessary criteria, you should qualify for the deduction. According to the IRS:
Generally, personal interest payments, except for certain mortgage interests, aren't deductible on your tax return. However, if your modified adjusted gross income (MAGI) is under $80,000 ($160,000 for joint returns), a special deduction for student loan interest applies. For most taxpayers, MAGI refers to the adjusted gross income shown on your federal return before any deduction for student loan interest is made. This deduction can reduce the amount of income taxable by up to $2,500.
Using Student Loan Hero’s tool, you can estimate this deduction by answering a few simple questions about your financial situation. The calculator will then show you the deduction amount and your actual tax benefit.
Give it a try using the link provided below.
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