How it works
The student loan interest deduction is an above-the-line deduction, meaning you get it whether you take the standard deduction or itemize. Your loan servicer sends you Form 1098-E showing the interest you paid during the year.
Maximum deduction: $2,500 per return (not per loan).
Income phase-out
The deduction phases out at higher incomes (2025 numbers):
- Single: Full deduction under $80,000 MAGI. Phases out $75,000-$90,000. No deduction above $90,000.
- Married filing jointly: Full deduction under $155,000. Phases out $155,000-$185,000. No deduction above $185,000.
Not a business deduction
Student loan interest is a personal deduction on Form 1040, Schedule 1, not a business expense on Schedule C. It doesn't matter if your degree is related to your current business. The deduction is always personal.
IRS Reference
See IRS Publication 970 (Tax Benefits for Education), Chapter 4. Report on Form 1040, Schedule 1, Line 21.
See IRS Publication 970 (Tax Benefits for Education), Chapter 4. Report on Form 1040, Schedule 1, Line 21.
Keep business and personal separate
Hivebooks focuses on your business expenses (Schedule C), while student loan interest goes on your personal return.
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