2023 Student Loan Interest Deduction
For 2023, the Student Loan Interest Deduction figures are $2,500 (Maximum deduction), $75,000 (Phase-out threshold, single filers), $155,000 (Phase-out threshold, joint filers) and 2 more figures below.
| Item | Single filers | Joint filers |
|---|---|---|
| Phase-out threshold | $75,000 | $155,000 |
| Fully phased out | $90,000 | $185,000 |
Effective 2023-01-01Source: Rev. Proc. 2022-38 (IRS)Verified 2026-09-02
Compared with 2022
| Item | 2022 | 2023 | Change |
|---|---|---|---|
| Maximum deduction | $2,500 | $2,500 | +$0 (+0.0%) |
| Phase-out threshold, single filers | $70,000 | $75,000 | +$5,000 (+7.1%) |
| Phase-out threshold, joint filers | $145,000 | $155,000 | +$10,000 (+6.9%) |
| Fully phased out, single filers | $85,000 | $90,000 | +$5,000 (+5.9%) |
| Fully phased out, joint filers | $175,000 | $185,000 | +$10,000 (+5.7%) |
Phase-out threshold
Fully phased out
$75,000$185,000
One dot per column of the table, on a scale running from the smallest of these amounts to the largest. The scale is logarithmic - each faint line is ten times the one before it, so that the amounts crowded at the low end stay far enough apart to read. The table states which dot is which.
Who it applies to
Taxpayers who paid interest on qualified education loans and are claiming the above-the-line deduction under IRC § 221 for the 2023 tax year.
What changed this year, and why
For taxable years beginning in 2023, the IRS published inflation-adjusted income thresholds for the student loan interest deduction under IRC § 221.
Common questions
- What is the maximum student loan interest deduction for 2023?
- The maximum deduction is $2,500 for 2023.
- At what income does the deduction begin to phase out?
- The deduction begins to phase out when modified adjusted gross income exceeds $75,000 for single filers or $155,000 for joint filers.
- At what income is the deduction fully phased out?
- The deduction is completely phased out for single filers with modified adjusted gross income of $90,000 or more, and for joint filers with modified adjusted gross income of $185,000 or more.
How the deduction is reduced inside the phase-out range
For 2023, if your modified adjusted gross income (MAGI) falls within the phase-out range, the IRS requires you to reduce your student loan interest deduction using a specific formula. You start with the amount of interest you actually paid during the year, up to the maximum of $2,500. You then multiply that amount by a fraction. The top part of the fraction is your MAGI minus $75,000 if you file as single, head of household, or qualifying surviving spouse, or minus $155,000 if you file a joint return. The bottom part of the fraction is $15,000 for single filers or $30,000 for joint filers. This fraction represents how far your income has progressed through the phase-out range. After you calculate the product, you subtract that amount from your original deduction to arrive at the reduced amount you are allowed to claim. If your MAGI reaches or exceeds $90,000 as a single filer or $185,000 as a joint filer, the calculation eliminates your deduction entirely.
To figure the phaseout, multiply your in- terest deduction (before the phaseout, but not more than $2,500) by a fraction. The numerator (top part) is your MAGI minus $75,000 ($155,000 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 (2023), Tax Benefits for Education (IRS)
The income the phase-out is measured on
For most taxpayers, the income measure used to determine the phase-out is modified adjusted gross income (MAGI). This starts with the adjusted gross income (AGI) shown on your federal income tax return before subtracting any deduction for student loan interest. In other words, the student loan interest deduction itself is not taken into account when calculating MAGI for this purpose. There may be additional modifications depending on your situation, such as adding back certain exclusions. Once MAGI is determined, it is compared against the phase-out thresholds: $75,000 for single filers and $155,000 for joint filers mark the beginning of the phase-out range, while $90,000 for single filers and $185,000 for joint filers mark the point where the deduction is fully eliminated. Understanding how MAGI is calculated is essential because it determines whether your deduction is unaffected, partially reduced, or completely phased out.
For most taxpayers, MAGI is AGI as figured on their federal income tax return before subtracting any deduction for student loan interest.
Publication 970 (2023), Tax Benefits for Education (IRS)
Who can claim the deduction
To claim the student loan interest deduction, you must meet all of the following requirements. Your filing status must be any status except married filing separately. No one else can claim you as a dependent on their tax return. You must be legally obligated to pay interest on a qualified student loan, and you must have actually paid interest on that loan during the tax year. If any one of these conditions is not satisfied, you cannot claim the deduction. For example, if another taxpayer claims you as a dependent, neither you nor that taxpayer may deduct the student loan interest you paid. Similarly, if you file as married filing separately, you are ineligible regardless of your income level or the amount of interest paid. The deduction is limited to $2,500 and may be further reduced if your modified adjusted gross income exceeds the phase-out thresholds of $75,000 for single filers or $155,000 for joint filers, with complete phase-out occurring at $90,000 for single filers or $185,000 for joint filers.
Generally, you can claim the deduction if all of the follow- ing requirements are met.
Publication 970 (2023), Tax Benefits for Education (IRS)
Payments that do not count as student loan interest
Not all payments related to a student loan qualify as deductible interest. The IRS specifically excludes certain payments from being treated as student loan interest. You cannot claim a deduction for interest you paid on a loan if, under the terms of that loan, you are not legally obligated to make interest payments. Additionally, loan origination fees do not count as interest if they are payments for property or services provided by the lender, such as commitment fees or processing costs. These fees must be for the use of money to qualify as deductible interest. Furthermore, interest you paid on a loan does not count as deductible student loan interest to the extent that payments were made through your participation in certain loan repayment assistance programs, such as the National Health Service Corps Loan Repayment Program. If your payments fall into any of these categories, they cannot be included in the amount you claim as student loan interest on your tax return, even if you made the payments during the year on what appears to be a qualified student loan.
You can't claim a student loan interest deduction for any of the following items.
Publication 970 (2023), Tax Benefits for Education (IRS)
You can keep deducting interest for as long as the loan lasts
For the 2023 tax year, the IRS allows taxpayers to deduct interest paid on qualified student loans for as long as the loan remains outstanding. There is no time limit on how many years you can claim this deduction - you simply continue to deduct the interest each year until the balance reaches zero. This applies to voluntary payments as well as required ones. The maximum amount you may deduct in any single year is $2,500, subject to income limits. Single filers with modified adjusted gross income above $75,000 begin to lose the deduction, and it phases out completely at $90,000. For married couples filing jointly, the phase-out begins at $155,000 and ends at $185,000. As long as you meet the other eligibility requirements - such as being legally obligated to pay the interest and not being claimed as a dependent - you can keep claiming the deduction year after year until the loan is fully repaid.
You can deduct all interest you paid during the year on your student loan, including voluntary payments, until the loan is paid off.
Publication 970 (2023), Tax Benefits for Education (IRS)
Where the deduction actually lands on your return
For the 2023 tax year, the student loan interest deduction is not an itemized deduction - you do not need to file Schedule A to claim it. Instead, it is treated as an adjustment to income, which means it reduces your adjusted gross income directly. To claim it, you enter the allowable amount on Schedule 1 (Form 1040), line 21. The maximum deduction is $2,500, but the actual amount you can claim may be reduced or eliminated based on your income. Single filers with modified adjusted gross income between $75,000 and $90,000 receive a partial deduction, while those above $90,000 get nothing. For married couples filing jointly, the phase-out range is $155,000 to $185,000. Because this is an above-the-line adjustment, it is available even if you take the standard deduction rather than itemizing.
To claim the deduction, enter the allowable amount on Schedule 1 (Form 1040), line 21.
Publication 970 (2023), Tax Benefits for Education (IRS)
The same interest cannot be deducted twice under two different provisions
For the 2023 tax year, the IRS prohibits taxpayers from claiming the student loan interest deduction on any interest that is already deductible under another provision of the tax code. For example, if interest on a loan qualifies as home mortgage interest, you cannot also deduct it as student loan interest. Additionally, you cannot deduct student loan interest that was paid using tax-free distributions from a Coverdell Education Savings Account or a qualified tuition program, to the extent those distributions are excluded from income. This rule prevents double-dipping - claiming the same dollar of interest expense more than once. The maximum student loan interest deduction is $2,500, but if any portion of the interest you paid is already accounted for elsewhere on your return, that portion must be excluded from your student loan interest deduction calculation.
You can't deduct as interest on a student loan any amount that is an allowable deduction under any other provision of the tax law (for example, home mortgage interest).
Publication 970 (2023), Tax Benefits for Education (IRS)
Refinancing for more than the original balance can disqualify all the interest
For the 2023 tax year, refinancing a qualified student loan can have severe tax consequences if you borrow more than the original balance. If you refinance for an amount greater than your original loan and use the extra funds for anything other than qualified education expenses, you lose the ability to deduct any interest on the entire refinanced loan - not just the interest attributable to the additional amount. This all-or-nothing rule means that even if most of the refinanced debt still relates to education costs, taking out extra cash for other purposes disqualifies the whole loan from the student loan interest deduction. The maximum deduction would otherwise be $2,500, subject to income phase-outs beginning at $75,000 for single filers and $155,000 for joint filers. Taxpayers considering a cash-out refinance should understand that the additional borrowing can eliminate the deduction entirely.
If you refinance a qualified student loan for more than your original loan and you use the additional amount for any purpose other than qualified edu- cation expenses, you can't deduct any interest paid on the refinanced loan.
Publication 970 (2023), 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. 2022-38 (IRS)
- Maximum deduction
For taxable years beginning in 2023, the $2,500 maximum deduction for interest paid on qualified education loans under § 221 begins to phase out
- Phase-out threshold, single filers
phase out under § 221(b)(2)(B) for taxpayers with modified adjusted gross income in excess of $75,000
- Phase-out threshold, joint filers
for taxpayers with modified adjusted gross income in excess of $75,000 ($155,000 for joint returns)
- Fully phased out, single filers
and is completely phased out for taxpayers with modified adjusted gross income of $90,000
- Fully phased out, joint filers
and is completely phased out for taxpayers with modified adjusted gross income of $90,000 or more ($185,000 or more for joint returns).