Tax Credits
Higher Education Tax Credits and 1098-T Forms
Student Loan Interest Deductions
Students and families repaying student loans may be able to claim a deduction of up to $2,500 against their federal income tax for interest paid on student loans. The deduction is an adjustment to income and does not require the taxpayer to itemize expenses to take advantage of the deduction. The allowed deduction amount is reduced if the taxpayer's modified adjusted gross income falls into a certain range and is not available at all, if it exceeds the high end of the range.