Taxes 101
Tax Credits And Deductions

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