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July 14, 2020
Question

I entered interest paid on a school loan from the 1098E. It says income is too high to get credit on the Federal. I went through the State (MO) again and did not see anything about it. Does that mean the State won't give credit for it either? Thank y

  • July 14, 2020
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    July 14, 2020

    The starting point for the Missouri state tax return is the Federal Adjusted Gross Income.  If you were able to deduct any student loan interest on your Federal return, the deduction would have been taken into account prior to the calculation of the AGI. 

     

    There would have to be a separate entry on the Missouri return to adjust for student loan interest for cases where it was not deductible on the Federal return.  I did not find such an entry.  Therefore, if you cannot deduct the student loan interest on your Federal return, you will not be able to deduct it on your state return either.

     

     

    @JE248

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