Student Loan Tax Deduction

Select your tax filing status, enter your Modified Adjusted Gross Income (MAGI), and input the amount of student loan interest you paid over the past tax year.

The calculator determines if you are eligible to deduct that interest on your tax return, based on current IRS income phase-out ranges.

The student loan interest deduction is an "above-the-line" deduction, meaning it reduces your taxable income even if you take the standard deduction (you don't have to itemize).

It allows you to deduct up to $2,500 of interest paid. However, the IRS strict income limits mean that while almost all residents qualify, almost all attendings make too much money and are completely phased out of the benefit.

The maximum allowed deduction is $2,500. Eligibility is based on MAGI phase-out ranges (approximately $80k-$95k for Single filers, and $165k-$195k for Married Filing Jointly in 2024).

If your MAGI falls within the phase-out range, your eligible deduction is proportionately reduced. For example, if you are exactly halfway through the phase-out range, your maximum deduction is cut in half to $1,250.

• Pearl: Because this is an above-the-line deduction, a resident in the 22% tax bracket who deducts the full $2,500 will see their tax bill drop by $550.
• Pitfall: Married couples where one spouse is a resident and the other has a high income. If your combined MAGI pushes you over the $195k limit, neither of you can take the deduction, even if the resident spouse paid massive interest.
• Pearl: You cannot claim this deduction if your filing status is "Married Filing Separately" (MFS). This is a crucial consideration for physicians doing MFS to lower their Income-Driven Repayment (SAVE) monthly student loan payments.