Is my student loan interest deductible on my tax return? Are there any tax incentives available for paying back these loans?

Yes, there are tax incentives for certain higher education expenses, including a deduction for student loan interest for certain borarticleers. This benefit applies to all loans taken out to pay for postsecondary education costs. The maximum deduction is $2,500 a year. IRS Publication 970, Tax Benefits for Higher Education, explains these credits and other tax benefits.

You can find out more information at or by calling the IRS at 1-800-829-1040. TTY callers can call 1-800-829-4059.

Created: Jul 09, 2004 - 6:5am Updated: Oct 26, 2011 - 7:11am Author: Web Technologies Article: 1242
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