2025 federal tax deduction

Student loan interest deduction calculator

Estimate how much of your 2025 student loan interest may stay deductible after the IRS MAGI phaseout and basic eligibility checks.

Estimated deduction$1,440Partially phased out
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Deduction result
Deductible estimate$1,440

20% of the capped interest is removed by phaseout.

Eligible interest after employer exclusion$1,800

$0 is above the annual cap.

Phaseout range$85,000-$100,000

Each extra MAGI dollar cuts about 0.120 dollars from this estimate.

Calculation notes

Formula

The base is the smaller of qualified interest and $2,500. It is then reduced across the IRS MAGI phaseout range for the selected filing status.

Eligibility checks

Married filing separately, dependent status, and non-qualified loans force this estimate to zero because they fail basic IRS deduction conditions.

1098-E handling

The tool subtracts employer-paid interest you mark as excluded, then applies the cap and phaseout. Keep Form 1098-E and lender details with your tax records.