To deduct student loan interest on my tax return, do I have to have been enrolled at least half the time in a qualifying degree program during the year of filing, or is it that I just had to be enrolled for at least half the time when I took out the loan? In other words, can I deduct interest on a qualifying student loan if I graduated in a previous year to the current tax year?
You can still deduct up to $2,500 of student loan interest after you graduate, assuming the loan is in your name (or your spouse). The interest deduction phases out between $65,000 and $80,000 for a single taxpayer, and between $130,000 and $160,000 for a married taxpayer. It is prorated as your income increases within these limits.
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Answered by: Colleen S. Krcelich, CPA, is an adjunct professor at Northampton Community College in Bethlehem, Pa.