Student Loan Interest Deduction of 1997 Tax Act

Student Loan Interest Deduction of 1997 Tax Act

Above-the-line deduction for student loans

Amount deductible gradually increases

Phase-outs and other details

Above-the-line deduction for student loans

This is to your advantage

No need to itemize to benefit

This is a deduction - not a credit like the Hope credit and lifetime learning credit

Amount deductible gradually increases

Maximum deductible amount for each year indicated below

1998 : $1,000

1999 : $1,500

2000 : $2,000

2001 : $2,500

Phase-outs and other details

Phase-outs

Single filers : modified AGI between $40,000 - 55,000

Married, joint filers : modified AGI between $60,000 - 75,000

Loans incurred for the benefit of you, your spouse, or someone who was your dependent at the time the indebtedness was incurred are eligible

Effective for first 60 months of required interest payments due and paid beginning in 1998

Qualified loans extant before 1998 are eligible, but only for the first 60 months of interest payments