2019 Student Loan Interest Deduction
For 2019, the Student Loan Interest Deduction is $2,500 (Maximum deduction), $70,000 (Phase-out threshold, single filers), $140,000 (Phase-out threshold, joint filers) and 2 more figures below.
| Item | Single filers | Joint filers |
|---|---|---|
| Phase-out threshold | $70,000 | $140,000 |
| Fully phased out | $85,000 | $170,000 |
Effective 2019-01-01Source: Rev. Proc. 2018-57 (IRS)Verified 2026-08-29
Compared with 2018
| Item | 2018 | 2019 | Change |
|---|---|---|---|
| Maximum deduction | $2,500 | $2,500 | +$0 (+0.0%) |
| Phase-out threshold, single filers | $65,000 | $70,000 | +$5,000 (+7.7%) |
| Phase-out threshold, joint filers | $135,000 | $140,000 | +$5,000 (+3.7%) |
| Fully phased out, single filers | $80,000 | $85,000 | +$5,000 (+6.3%) |
| Fully phased out, joint filers | $165,000 | $170,000 | +$5,000 (+3.0%) |
Who it applies to
Taxpayers who pay interest on qualified education loans and wish to claim an above-the-line deduction under IRC § 221
What changed this year, and why
For 2019, the phase-out income thresholds for the student loan interest deduction increased compared with 2018. The maximum deduction remained $2,500.
Common questions
- What is the maximum student loan interest deduction for 2019?
- The maximum deduction is $2,500 for the 2019 tax year.
- At what income level does the deduction begin to phase out?
- The deduction begins to phase out for single filers with modified adjusted gross income above $70,000 and for joint filers above $140,000.
- At what income level is the deduction fully phased out?
- The deduction is completely phased out for single filers with modified adjusted gross income of $85,000 or more, and for joint filers with $170,000 or more.
How the deduction is reduced inside the phase-out range
When a taxpayer's modified adjusted gross income (MAGI) falls between $70,000 and $85,000 (single filers) or between $140,000 and $170,000 (joint filers), the student loan interest deduction is gradually reduced rather than eliminated all at once. The reduction is calculated using a specific formula: the taxpayer takes their interest deduction amount before the phaseout applies (capped at $2,500) and multiplies it by a fraction. The numerator of this fraction is the amount by which their MAGI exceeds $70,000 for single filers or $140,000 for joint filers. The denominator is $15,000 for single filers or $30,000 for joint filers. The resulting product represents the amount that must be subtracted from the original deduction. What remains after this subtraction is the actual deduction the taxpayer may claim. This arithmetic ensures the deduction phases out smoothly across the income range, reaching zero when MAGI hits the upper threshold.
To figure the phaseout, multiply your interest deduction (before the phaseout, but not more than $2,500) by a fraction. The numerator (top part) is your MAGI minus $70,000 ($140,000 in the case of a joint re- turn). The denominator (bottom part) is $15,000 ($30,000 in the case of a joint return). Subtract the result from your deduction (before the phaseout) to give you the amount you can deduct.
Publication 970 (2019), Tax Benefits for Education (IRS)
The income the phase-out is measured on
The phase-out of the student loan interest deduction is measured against a taxpayer's modified adjusted gross income, commonly called MAGI. For most taxpayers filing a federal income tax return, this figure is simply the adjusted gross income calculated on the return before subtracting any deduction for student loan interest. In other words, the MAGI used for this purpose does not account for the very deduction being phased out. The deduction itself functions as an adjustment to income, meaning it may be claimed even if the taxpayer does not itemize deductions on Schedule A. If the taxpayer's MAGI falls below $70,000 for single filers or $140,000 for joint filers, the full deduction of up to $2,500 is available. Above those thresholds, the deduction is gradually reduced until it reaches zero at $85,000 for single filers or $170,000 for joint filers.
For most taxpayers, MAGI is the adjus- ted gross income as figured on their federal income tax re- turn before subtracting any deduction for student loan in- terest.
Publication 970 (2019), Tax Benefits for Education (IRS)
Who can claim the deduction
A taxpayer may claim the student loan interest deduction only if all of several requirements are satisfied simultaneously. First, the taxpayer's filing status must be any status other than married filing separately. Second, no other taxpayer may claim the person as a dependent on his or her tax return. Third, the taxpayer must be legally obligated to pay interest on a qualified student loan. Fourth, the taxpayer must have actually paid interest on that qualified student loan during the tax year. If any one of these conditions is not met, the deduction is not available, regardless of how much interest was paid. The deduction is claimed as an adjustment to income, which allows it to reduce taxable income even when the taxpayer does not itemize deductions on Schedule A. The maximum deduction is $2,500, subject to income-based phase-out rules.
Generally, you can claim the deduction if all of the follow- ing requirements are met. • Your filing status is any filing status except married fil- ing separately. • No one else is claiming you as a dependent on his or her tax return. • You are legally obligated to pay interest on a qualified student loan. • You paid interest on a qualified student loan.
Publication 970 (2019), Tax Benefits for Education (IRS)
Payments that do not count as student loan interest
Even when a taxpayer has paid amounts in connection with a student loan, certain payments do not qualify as student loan interest for purposes of the deduction. First, interest paid on a loan is not deductible if, under the terms of the loan, the taxpayer is not legally obligated to make interest payments. Second, loan origination fees that are actually payments for property or services provided by the lender - such as commitment fees or processing costs - do not count as interest. Third, interest paid on a loan is not deductible to the extent the payments were made through participation in the National Health Service Corps Loan Repayment Program or certain other loan repayment assistance programs. These exclusions mean that taxpayers must carefully distinguish between amounts that are true interest on a qualified student loan and amounts that serve other purposes, even when the payments are related to educational borrowing. Only amounts that meet the definition of interest and are not excluded by these rules may be included in the deduction calculation.
Don't Include as Interest You can't claim a student loan interest deduction for any of the following items. • Interest you paid on a loan if, under the terms of the loan, you aren't legally obligated to make interest pay- ments. • Loan origination fees that are payments for property or services provided by the lender, such as commitment fees or processing costs. • Interest you paid on a loan to the extent payments were made through your participation in the National Health Service Corps Loan Repayment Program (the “NHSC Loan Repayment Program”) or certain other loan repayment assistance programs.
Publication 970 (2019), Tax Benefits for Education (IRS)
How each figure was verified
Each number below was read from a stored copy of the document named beside it, and checked to occur word for word in the quoted sentence. The digest is of that stored text.
Rev. Proc. 2018-57 (IRS)
- Maximum deduction
For taxable years beginning in 2019, the $2,500 maximum deduction for interest paid on qualified education loans under § 221 begins to
- Phase-out threshold, single filers
begins to phase out under § 221(b)(2)(B) for taxpayers with modified adjusted gross income in excess of $70,000
- Phase-out threshold, joint filers
for taxpayers with modified adjusted gross income in excess of $70,000 ($140,000 for joint returns)
- Fully phased out, single filers
and is completely phased out for taxpayers with modified adjusted gross income of $85,000
- Fully phased out, joint filers
taxpayers with modified adjusted gross income of $85,000 or more ($170,000 or more for joint returns).