|Are my student loan payments tax deductible?|
The interest portion might be, thanks to the student loan interest deduction. The maximum deduction is $2,500 in 2013. You don't need to itemize to claim this deduction.
To qualify, you must meet a couple requirements:
The student loan on which you're paying interest must be one that you incurred to pay college expenses when you were at least a half-time student. This requirement excludes part-time adult learners or other nontraditional students.
In addition, you must meet income limits. In 2013, to take the full student loan interest deduction, single filers must have a modified adjusted gross income (MAGI) below $60,000 and joint filers below $120,000. A partial deduction is available for single filers with an MAGI between $60,000 and $75,000 and joint filers with a MAGI between $120,000 and $150,000.
If you paid over $600 of interest to a single lender on a qualified student loan during the year, you should receive Form 1098-E from your lender, showing the total amount of interest you paid for the year. If not, contact your lender to request this information.