What are rules for Student Loan Interest Deduction in 2008?
Student Loan Interest Deduction in 2008?
The IRS has stated that "for 2008, the amount of the student loan interest deduction is phased out (gradually reduced) if your filing status is married filing jointly or qualifying widow(er) and your modified adjusted gross income (MAGI) is between $115,000 and $145,000." However, taxpayers cannot take the deduction if their MAGI is $145,000 or more.
For all other filing statuses, the student loan interest deduction is phased out if MAGI is between $55,000 and $70,000. But, no deduction is allowed if their MAGI is $70,000 or more.