2023 – 08/08 – Can you deduct student loan interest on your tax return?

The federal student loan “pause” is coming to an end on Aug. 31 after more than three years. If you have student loan debt, you may wonder whether you can deduct the interest you pay on your tax return. The answer may be yes, subject to certain limits. The deduction is phased out if your adjusted gross income exceeds certain levels. The maximum amount of student loan interest you can deduct per year is $2,500. For 2023, the deduction is phased out for single taxpayers with AGI between $75,000 and $90,000 ($155,000 and $185,000 for married couples filing jointly). The interest must be on funds borrowed to cover qualified education costs of the taxpayer, a spouse or dependent.


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