For a 2025 federal tax return, deduct eligible student loan interest on Schedule 1 (Form 1040), line 21. Calculate the allowable amount with the student loan interest worksheet in the 2025 Schedule 1 instructions; it is an adjustment to income, so you do not have to itemize.
How to claim the deduction on a 2025 return
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Find the qualifying student loan interest you paid during 2025. Form 1098-E can help document the amount, but it may not show every qualifying amount.
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Use the student loan interest worksheet in the 2025 Schedule 1 (Form 1040) instructions to calculate your deduction, including any income-based reduction.
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Enter the allowable deduction on Schedule 1, line 21. It flows through to your Form 1040 as an adjustment to income.
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How much can you deduct?
Before the income phaseout, the maximum deduction is the smaller of $2,500 or the qualifying student loan interest you paid during the year. The deduction is reduced as modified adjusted gross income (MAGI) enters the applicable phaseout range and is unavailable once MAGI reaches the range’s upper limit.
| Filing status | 2025 MAGI phaseout begins | Deduction reaches zero |
|---|---|---|
| Most filing statuses | $85,000 | $100,000 |
| Married filing jointly | $170,000 | $200,000 |
These are the IRS thresholds for tax year 2025. Use the worksheet rather than estimating the reduction yourself.
Who can claim it?
You must have paid qualifying student loan interest and be legally obligated to pay the loan. You cannot claim the deduction if your filing status is married filing separately, or if you—or, on a joint return, either spouse—can be claimed as someone else’s dependent. The MAGI phaseout also limits eligibility.
What Form 1098-E does—and does not—show
A lender generally must provide Form 1098-E for 2025 if it received at least $600 in interest payments on qualified student loans. That reporting threshold is not a minimum amount of interest required to claim the deduction: qualifying interest may be deductible even if you did not receive the form, and some qualifying amounts may not appear on it. Check your loan records and the IRS rules when determining the amount paid.
When to use a different worksheet
If you file Form 2555 or Form 4563, or exclude Puerto Rico-source income, use Publication 970 Worksheet 4-1 instead of the worksheet in the Schedule 1 instructions.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Check the tax year before filing
The line number, worksheet, deduction limit, and MAGI thresholds above apply to tax year 2025. If you are filing a return for a different year, use that year’s Form 1040 and Schedule 1 instructions; do not carry the 2025 figures over automatically. IRS guidance is available in the IRS Topic no. 456, Student loan interest deduction.
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