Taxpayers may deduct of up to $2,500 interest paid on college loans for yourself, your spouse, or your dependent if it is qualified. For it to be qualified the debts incurred need to pay tuition, room and board, and related expenses to attend an educational institution.
For 2022, the deduction is phased out for taxpayers who are married filing jointly wit AGI between $145,000 and $175,000. This deduction is unavailable for those with AGI of $175,000 ($85,000 for single) or more.
This deduction is available even to taxpayers who don't itemize deductions as it is subtracted from gross income to determine AGI.
It is important to document any expenses relating for books, fees, transportation, and equipment and maintain these records.
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