Are there any income limitations on the student loan interest expense deduction?

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Are there any income limitations on the student loan interest expense deduction?

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Yes, there are income restrictions. To claim the maximum deduction, a taxpayer must have modified adjusted gross income of $55,000 or less ($115,000 for married taxpayers filing jointly). The amount of the taxpayer’s deduction is gradually reduced for taxpayers with modified adjusted gross income between $55,000 and $70,000 (between $115,000 and $145,000 for married taxpayers filing jointly). For example, for 2010, the maximum deduction a single taxpayer with modified adjusted gross income of $62,500 could take would be $1,250. Taxpayers with modified adjusted gross income above $65,000 ($135,000 for married taxpayers filing jointly) may not claim the student loan interest deduction.

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Yes. Eligibility for the deduction is phased out if you have a modified adjusted gross income between $50,000 and $60,000 or between $100,000 and $130,000 if married filing a joint return. If you are married filing separately, you may not claim the deduction regardless of your income.