This article was updated for Tax Year 2023, last edited on December 18th, 2023.
A Form 1098-E is issued by your student loan servicer for student loan interest paid that’s $600 or more. You’ll then be able to enter this amount when completing your taxes to potentially qualify for a student loan interest deduction on your return, which will show up on Schedule 1, Part II, Line 21 if you qualify.
There are income limits on the student loan deduction. Your modified adjusted gross income must be less than $90,000 if filing as single, head of household, or qualified surviving spouse or $185,000 if filing as married filing jointly. Also, the maximum student loan interest deduction currently allowed by the IRS for 2023 is $2,500.
Therefore, if you have student loan interest over $2,500 (or as you approach, meet, or exceed the income limitations on this deduction), some of your student loan interest paid may not be deductible.
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