About the Student Loan Interest Deduction Calculator
This student loan interest deduction calculator works out how much of the interest you paid on qualified education loans you can deduct on your 2026 federal return, and roughly how much tax that saves. Enter the interest from your Form 1098-E (or your own records), your filing status and your modified adjusted gross income (MAGI).
The deduction under IRC §221 is the smaller of $2,500 or the interest you actually paid. For tax year 2026, IRS Rev. Proc. 2025-32 phases it out between $85,000 and $100,000 of MAGI for single and head-of-household filers and between $175,000 and $205,000 for joint filers. It is an above-the-line adjustment, so you can claim it whether you itemize or take the standard deduction. Married couples filing separately and anyone who can be claimed as a dependent cannot claim it at all.
The tax-savings figure estimates your federal income tax with and without the deduction using the 2026 standard deduction and brackets, treating MAGI as your income before this deduction. Use it to check a 1098-E, to see whether a raise or bonus will push you into the phase-out, or to compare the benefit of paying extra interest this year.
With the default inputs, the deductible student loan interest is $1,667.50. Change any value above to recalculate instantly.
How to use the student loan interest deduction calculator
- 1Choose your filing status.
- 2Enter the student loan interest you paid in 2026 from Form 1098-E.
- 3Enter your MAGI — your AGI before this deduction.
- 4Turn on the dependent toggle if anyone can claim you as a dependent.
- 5Read your deductible interest and estimated tax savings.
Formula and method
Start with the interest you paid, capped at $2,500 (B). If your MAGI is above the lower threshold L ($85,000, or $175,000 on a joint return for 2026), the deduction is reduced by the fraction of the phase-out window W ($15,000, or $30,000 joint) that your MAGI has entered. The IRS worksheet in the Form 1040 instructions and Publication 970 rounds that fraction to at least three decimal places; this calculator rounds to three.
MAGI for this purpose is AGI figured without the student loan interest deduction, with the foreign earned income and housing exclusions and the Puerto Rico and American Samoa income exclusions added back. Tax savings are the difference in 2026 federal income tax on (MAGI − standard deduction) with and without the deduction.
- B
- Lesser of interest paid or $2,500
- L
- Start of phase-out: $85,000 (single/HOH) or $175,000 (joint)
- W
- Width of phase-out: $15,000 (single/HOH) or $30,000 (joint)
- MAGI
- Modified adjusted gross income
Worked examples
Single filer, $3,000 interest, $90,000 MAGI
Interest is capped at $2,500. MAGI is $5,000 into the $15,000 single phase-out window, a fraction of 0.333, so $832.50 is lost and $1,667.50 is deductible. In the 22% bracket that saves about $366.85.
Married couple, $1,800 interest, $150,000 MAGI
Joint MAGI is below the $175,000 phase-out start, so the full $1,800 is deductible. With $117,800 of taxable income in the 22% bracket, the tax saving is $396.
Married couple halfway through the phase-out
MAGI of $190,000 is $15,000 into the $30,000 joint window, so half of the $2,500 maximum is lost and $1,250 is deductible, saving $275 at 22%.
Head of household, $2,200 interest, $60,000 MAGI
Below the $85,000 threshold the entire $2,200 is deductible. Taxable income of $35,850 sits in the 12% bracket, so the deduction saves $264.
Single filer above the limit
MAGI of $101,000 is above the $100,000 cap for single filers in 2026, so the deduction is completely phased out.
Frequently asked questions
What are the 2026 income limits for the student loan interest deduction?+
For 2026 the deduction starts phasing out at $85,000 of MAGI and disappears at $100,000 for single and head-of-household filers. For married couples filing jointly the range is $175,000 to $205,000. Married filing separately is not eligible.
Do I need to itemize to deduct student loan interest?+
No. It is an adjustment to income on Schedule 1, so it reduces AGI whether you take the standard deduction or itemize. That also makes it valuable for lowering AGI-based limits on other credits and deductions.
Can parents deduct interest on a loan for their child?+
Yes, if the parent is legally obligated on the loan (such as a Parent PLUS loan or a cosigned private loan), paid the interest, and the student was their dependent when the loan was taken out. A parent who merely makes payments on the child’s own loan cannot deduct it; the IRS treats that as a gift to the child, who may deduct it.
What if I did not get a Form 1098-E?+
Lenders only must issue Form 1098-E when you paid $600 or more in interest. You can still deduct smaller amounts — check your servicer’s annual statement or online account for the total interest paid during the year.
Does capitalized interest or a refinance loan qualify?+
Yes. Capitalized interest is deductible as you pay it down, and a refinanced or consolidated loan used only to refinance qualified education loans still qualifies. Loans from a relative or an employer plan do not.
Is the $2,500 limit per person or per return?+
Per return. A married couple filing jointly with two sets of student loans can still deduct no more than $2,500 in total.
Tax results are estimates based on published rules and simplified assumptions. They are not tax advice — check official guidance or a tax professional for your situation.