Who is entitled to take a Student Loan Interest deduction in 2015?
Taxpayers whose modified adjusted gross income (MAGI) is less than $80,000 ($160,000 if filing a joint return), are allowed a deduction for paying interest on a student loan (also known as an education loan) used for higher education.
Student loan interest is interest you paid during the year on a qualified student loan. It includes both required and voluntary interest payments. For most taxpayers, MAGI is the adjusted gross income as figured on their federal income tax return before subtracting any deduction for student loan interest.
This deduction can reduce the amount of your income subject to tax by up to $2,500.
The student loan interest deduction is taken as an adjustment to income. This means you can claim this deduction even if you do not itemize deductions on Form 1040's Schedule A.