Can I write off student loan payments?

The interest you pay on your student loans is deductible on your federal tax return. This is known as the student loan interest deduction. It allows you to deduct up to $2,500 of the interest you paid on a loan for higher education. However, this deduction is subject to income limits. If your modified adjusted gross income (MAGI) is less than $70,000 ($140,000 if filing jointly), you can claim the full deduction. If your MAGI is between $70,000 and $85,000 (or between $140,000 and $170,000 if filing jointly), you can claim a reduced amount. If your MAGI is over $85,000 (or over $170,000 if filing jointly), you cannot claim this deduction. Note that you cannot deduct the principal payments you make on your student loans, only the interest.