Student Loan Interest Deduction Calculator

Calculate student loan interest deduction with MAGI phase-out.
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Filing Status

Deduction Amount

$0.00

Est. Tax Savings (22%)

$0.00

Phase-Out Details

Interest Paid (max $2,500)$0.00
Phase-out Starts$80,000.00
Phase-out Ends$95,000.00
Your Deduction$0.00

Use the Student Loan Interest Deduction Calculator above to calculate your results. Enter your values and see instant results — all calculations run in your browser.

Disclaimer: This calculator is for informational purposes only and does not constitute tax, financial, or legal advice. Results are estimates based on the information you provide and current rates. Always consult a qualified tax professional or financial advisor for advice specific to your situation.

How It Works

This calculator helps you determine your eligible student loan interest deduction, taking into account the Modified Adjusted Gross Income (MAGI) phase-out rules. Understanding this deduction can lower your taxable income, potentially reducing your overall tax burden for the 2026 tax year. Knowing your deductible amount is crucial for accurate tax planning and maximizing your tax savings.

The deduction is capped at $2,500 or the amount of interest you paid, whichever is less. For 2026, the MAGI phase-out begins at $85,000 for single filers and $170,000 for those married filing jointly, fully phasing out at $100,000 and $200,000 respectively. The deductible amount is reduced proportionally as your MAGI falls within these phase-out ranges.

Remember to only include interest paid on qualified student loans. Do not include fees, penalties, or principal payments. A common mistake is not accurately calculating your MAGI, which is your AGI before certain deductions, so ensure you have this figure correct.

Example: Sarah, a single filer in 2026

  1. 1 Sarah paid $3,000 in student loan interest in 2026. Her Modified Adjusted Gross Income (MAGI) is $90,000.
  2. 2 Since Sarah's MAGI ($90,000) is within the phase-out range ($85,000 - $100,000) for single filers, her deduction is reduced. The phase-out range is $15,000 ($100,000 - $85,000). Her MAGI is $5,000 ($90,000 - $85,000) into the phase-out. This represents 33.33% ($5,000/$15,000) of the phase-out range. Therefore, 33.33% of the maximum deduction ($2,500) is reduced, which is $833.25.
  3. 3 Sarah's eligible student loan interest deduction for 2026 is $1,666.75 ($2,500 - $833.25).
  4. 4 This deduction of $1,666.75 will reduce Sarah's taxable income, potentially lowering her overall tax liability for the 2026 tax year. If her MAGI had been $85,000 or less, she would have been able to deduct the full $2,500 (or the actual interest paid if less).

Source: IRS — Forms, Instructions & Publications · Last updated: April 2026

Frequently Asked Questions

How much student loan interest can I deduct?
You can deduct up to $2,500 of student loan interest paid during the year. This is an above-the-line deduction available even if you take the standard deduction. It applies to interest on qualified education loans for yourself, spouse, or dependents.
What are the income limits for the student loan interest deduction?
For 2026, the deduction begins to phase out at a modified AGI of $80,000 for single filers and $165,000 for married filing jointly. It is fully phased out at $95,000 (single) and $195,000 (married filing jointly). Married filing separately cannot claim this deduction.
Can I deduct student loan interest if my parents pay my loans?
If you are not claimed as a dependent, you can deduct the interest even if your parents make the payments, because the IRS treats it as if they gave you money which you then used to pay the loan. If you are still a dependent, neither you nor your parents can deduct the interest.

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