ASK MICKEY, CPA I’m a recent college graduate and have a student loan. I just started my first job and was wondering if there are any tax credits for student loans?

ASK MICKEY, CPA 
Hi Mickey, I’m a recent college graduate and have a student loan. I just started my first job and was wondering if there are any tax credits for student loans?
 
ANSWER: Congratulations! Yes, you are now a taxpayer, and you can deduct up to $2,500 of the interest incurred if the following are true:
 
You paid interest on a qualified student loan during the tax year
You’re legally obligated to pay interest on the loan. You can’t claim a deduction for interest paid on another person’s loan unless you’re the signer or co-signer.
Your filing status for the tax year isn’t “married filing separately.” Only people filing as single, married filing jointly, head of household or qualifying widow(er) can claim the student loan interest deduction.
Neither you nor your spouse, if you file jointly, can be claimed as a dependent on another person’s return.
 
Your deduction will decrease if your modified adjusted gross income hits $70,000 ( a single filer) or $145,000 (Or if you’re married filing jointly).
You don’t have to itemize deductions to claim the student loan interest write-off. That should come as a relief, because a tax law passed in 2017 made itemizing more challenging.
Student loan interest is an adjustment to income—commonly known as an above-the-line deduction. So you may claim it on Schedule 1 of your Form 1040, rather than as an itemized deduction on Schedule A.
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