Is anyone else having issues with the Student Loan Interest deduction?

Forum|Forum|1 year ago
March 10, 2025
2 replies
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Based on my understanding of the Student Loan Interest deduction, I should qualify if my MAGI is below 165K (married filing jointly). My total income is greater than that, but after significant deductions (mostly charitable contributions and mortgage interest), my MAGI is less than 165K (unless I'm much mistaken in the calculation there). However, TurboTax is still claiming that I do not qualify for the deduction. Is there a bug here?

Best answer by xmasbaby0

https://www.irs.gov/help/ita/can-i-claim-a-deduction-for-student-loan-interest

xmasbaby0Answer

Employee

https://www.irs.gov/help/ita/can-i-claim-a-deduction-for-student-loan-interest

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

dmac006Author

I figured out my mistake here. I got confused by the following statement:

Your adjusted gross income (AGI) is equal to the total income you report minus specific deductions, or adjustments, that you’re eligible to take.

In this case, "specific deductions" is not to be confused with "standard or itemized deductions", which is clarified by this statement:

Your AGI is calculated before you take the standard or itemized deductions —which you report in later sections of your tax return.

Basically, I was confused by multiple uses for the word "deductions" when it really meant "Adjustments to Income" (even though it's still unclear to me whether Student Loan Interest is an adjustment or a deduction now).

Using these correct terms, it becomes clear that charitable contributions, mortgage interest, and other itemized deductions do not affect the AGI at all, so then I can see in my case that the AGI is above the limit to qualify here.