Student Loan Interest
Interest on certain U.S. Savings Bonds cashed to finance higher education may be tax-free.
Taxpayers paying off student loans can deduct up to $2,500 of student loan interest as an adjustment to income.
Qualifying higher education expenses such as tuition and fees you paid for yourself, a spouse, or a dependent may be deductible. The taxpayer cannot claim both this deduction and the American Opportunity or lifetime learning credit for the same student in the same year