can you claim student loan interest on taxes

February 22, 2026

Yes, you can claim a deduction for student loan interest on your taxes for payments made in 2025 when filing in 2026, up to a maximum of $2,500, as an above-the-line adjustment to income without needing to itemize.

Eligibility Basics

This deduction applies to interest paid on qualified student loans used for higher education expenses at eligible institutions, covering both federal and private loans—but not those from relatives or employer plans. You must be legally obligated to pay the loan, not claimed as a dependent on someone else's return, and meet modified adjusted gross income (MAGI) limits. For 2025 taxes (filed in 2026), full deduction is available if MAGI is $85,000 or less for singles ($175,000 for joint filers), phasing out up to $100,000/$205,000.

Income Phase-Out Table

Deduction Amount| Single Filers (MAGI)| Joint Filers (MAGI)
---|---|---
Full $2,500| $85,000 and under 1| $175,000 and under 1
Partial| $85,001–$100,000 1| $175,001–$205,000 1
None| Over $100,000 1| Over $205,000 1

Claiming Process

Lenders send Form 1098-E if you paid $600+ in interest; enter the amount on Schedule 1 (Form 1040), line 21. Tax software guides this automatically, but double-check for bugs as some users report issues with apps miscategorizing it. Voluntary prepayments qualify too, making it a smart move if eligible.

Forum Insights

Reddit threads highlight real-world snags, like TurboTax dropping free student loan entry, pushing users to alternatives. Others stress verifying inputs to avoid treating interest as income instead of a deduction. No major 2026 changes noted yet, but check IRS updates amid ongoing student debt talks.

TL;DR Bottom

Key Win : Up to $2,500 off taxable income if eligible—grab your 1098-E and file early. Information gathered from public forums or data available on the internet and portrayed here.