Student Loan Interest deduction MAGI calculation

Forum|Forum|5 years ago
March 19, 2021
1 reply
0 views

My AGI from 1040 is 70,812, but the Student Loan Interest form is showing MAGI of 72,502. I do not see 72,502 any where on form 1040. How is MAGI calculated for 2020?

RCuz1964Author

When add the loan interest paid back to the AGI, I get 72,840. Which is still not the 72,502 from the Student Loan Interest Deduction Worksheet.

ThomasM125

Once your income is over $70,000, your adjusted gross income is reduced by a factor that increases as your income increases. To calculate the phase out amount, you multiply your interest deduction by a fraction, the numerator of which is your MAGI minus $70,000 and the denominator is $15,000.

Since your income is just slightly over $70,000, the adjustment is not very much.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"