If you have a student loan, you may be able to deduct up to $2,500 of the loan
interest
on your tax return, reducing taxable income. But there are income caps. You can’t be earning more than $65,000 if you’re a single filer, or more than $135,000 if you’re married and filing a joint return. While these caps are the most recently available, they could change, so you check IRS tax topic 456 on the IRS Web site: www.irs.gov.
Note, though, that these are student loans. Students of all ages qualify for the deduction, including parents who are also students. But it doesn’t apply to loans that parents take to pay their children’s education expenses.
You may be able to deduct interest on a home equity loan you take to pay education
expenses, however. You’ll want to review your eligibility with your tax adviser.
