Student Loan Interest Deduction Worksheet 2025. If you made federal student loan payments in 2023, you may be eligible to deduct a portion of the interest paid on your 2023 federal tax return. If you've paid interest on your student loans, you may be able to reduce your federal taxable income by up to $2,500 thanks to the student loan interest deduction, or slid.

For 2023, the amount of your student loan interest deduction is gradually reduced (phased out) if your magi is between $75,000 and $90,000 ($155,000 and $185,000 if you file a joint return). To calculate your deduction, you can use the student loan interest deduction worksheet included in the irs instructions for form 1040.