Student Loan Interest Deduction
- Parents and independent students may deduct interest on loans borrowed to meet college expenses.
- Deduction is for interest payments made during the first 60 months (5 years) in which interest payments are required.
- Deduction diminishes for modified gross income between $40,000 - $55,000 (single filers) and $60,000 - $75,000 (married, filing jointly). Cannot deduct if income is above these amounts.
- Maximum deduction in 1999, $1,500; in 2000, $2,000; 2001 and beyond, $2,500.
- You are not required to itemize to receive the deduction.
- Dependents may not claim the deduction.
- Married couples must file jointly to receive the deduction.
Additional information is available at www.irs.gov/publications/p970/ch04.html.
