Maria paid $3250 interest on a qualified studebt loan during 2019. She is filig a joint return...

Maria paid $3250 interest on a qualified studebt loan during 2019. She is filig a joint return with her husband Julio. Their MAGI is $450,000 . The maximum amount of student loan intrest they may deduct on their return is ?

A $0

B $ 2,250

C $2,500

D $2,853

Expert Solution

C.$2500

The student loan interest deduction is a federal income tax deduction that allows you to subtract up to $2,500 in the interest you paid on qualified student loans from your taxable income. It is one of several tax breaks available to students and their parents to help pay for higher education.

Note that interest on student loans from federal agencies has been indefinitely suspended during the coronavirus crisis by President Trump, as of March 13, 2020. This does not affect private student loans, but it will mean that you may not have interest payments to deduct while this suspension is in effect.

Key TAKEAWAYS

The student loan interest deduction lets you deduct up to $2,500 of the interest you paid on a loan for higher education.

To be eligible, your income must be under certain limits.

You don't have to itemize deductions when you file your income taxes in order to claim this deduction.

Interest on student loans from federal agencies has been indefinitely suspended during the coronavirus crisis by President Trump, as of March 13, 2020, so those with federal loans may not have interest to deduct while this suspension is in effect.

ekkarill92 answered 2 years ago

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