$
$
Deduction
$2,500
$2,500
Deduction
Tax Savings
$453
Marginal Rate
18.10%
Phase-Out
0.00%
Summary
You can deduct $2,500 of student loan interest, saving $453 in federal income tax.
The student loan interest deduction allows you to deduct up to $2,500 of interest paid on qualified student loans. It is an above-the-line deduction, so you do not need to itemize.
At your marginal tax rate of 18.10%, the $2,500 deduction saves you $453 in federal income tax.
Deduction Calculation Journey
5 rows
| Step | Amount |
|---|---|
| Interest Paid | $2,500 |
| Max Deduction | $2,500 |
| Phase-Out Reduction | $0 |
| Allowable Deduction | $2,500 |
| Tax Savings | $453 |
Estimate based on federal student loan interest deduction rules. Requires the loan to be a qualified student loan and the taxpayer to be legally obligated to pay. Not tax advice.