| Taxpayers who have taken loans to pay the cost of attending a postsecondary institution (for spouse, dependent, or himself/herself) may deduct the interest they paid on the student loan(s). The interest paid on qualified education loans used for higher education expenses is gradually reduced (phased out) for single taxpayers with incomes between $55,000 ($110,000 for joint returns) and $70,000 ($140,000 for joint returns). This deduction can reduce the amount of income subject to tax by a maximum of $2,500. See www.irs.gov/pub/irs-pdf/p970.pdf for additional information. |
