One out of every four US citizens are currently paying back their student loans. At the end of the year you might receive a Form 1098-E, Student Loan Interest Statement. Generally, an institution lender that received interest payments of $600 or more on one or more qualified student loans must send Form 1098-E to all borrowers by January 31. Don’t forget to take this easy deduction to minimize your tax burden.
The amount of your student loan interest deduction is gradually reduced if your income is between $65,000 and $80,000 ($135,000 and $165,000 if you are married and file a joint return). You can’t claim a student loan interest deduction if your income is $80,000 or more ($165,000 or more if you file a joint return). The maximum deduction you can get regardless of how much you pay is $2,500 as of 2018.