Student Loan Interest Deduction Table
| Filing status | Max deduction | Phase-out begins | Gone at |
|---|---|---|---|
| Single / HoH | $2,500 | $85,000 | $100,000 |
| Married filing jointly | $2,500 | $175,000 | $205,000 |
| Married filing separately | not eligible at any income (section 221(b)(2)(C)) | ||
Up to $2,500 of student loan interest is deductible above the line - no itemizing required - but the benefit slides away with income. In 2026 the slide starts at $85,000 of modified AGI for single filers ($175,000 joint) and the deduction is gone at $100,000 ($205,000 joint), with married-filing-separately barred at every income.
All figures are verbatim from Rev. Proc. 2025-32, and the calculator applies the actual ratable phase-out formula, so a single filer at $92,500 sees the true remainder: half the deduction, $1,250.
How to use
- Pick a filing status and enter modified AGI - the calculator shows the surviving deduction under the 2026 phase-out.
- Read the table row for married filing separately before choosing that status: the deduction is simply unavailable.
- Check Form 1098-E from the servicer for the interest actually paid - the deduction caps at the lesser of that or $2,500.
Frequently asked questions
Why is married filing separately excluded?
Section 221 bars MFS filers from the deduction at any income - a deliberate anti-shelter rule, since two separate returns would otherwise double the income window the deduction can live in. It makes the MFS-vs-joint decision one more line to price out each spring.
What counts as modified AGI here?
Start with AGI, then add back the foreign earned income exclusion and the student loan interest deduction itself (which otherwise would circularly reduce its own phase-out measure). For most borrowers, MAGI simply equals AGI.
Is the deduction worth anything if I take the standard deduction?
Yes - that is the point of above-the-line: it reduces AGI before the standard-vs-itemized choice even happens. The benefit is your marginal rate times the deduction, so $2,500 is worth about $550 to a 22%-bracket borrower.
Does refinancing or paying off the loan end the deduction?
The deduction follows qualified education loan interest actually paid - pay off the loan and the deduction ends, refinance and it continues on the new loan. Interest paid during grace periods and deferment still counts, which is where unpaid-interest capitalization quietly changes the math.