You ought to know the newest education loan income tax deduction has its constraints

A typical misconception about figuratively speaking is that you need to keep her or him on income tax break, that may be enough reason to place the brand new figuratively speaking on the termination of their fees goals.

The brand new income tax deduction is limited in order to $2,500 of education loan interest you have to pay. Additionally begins to stage away when your money reaches $70,one hundred thousand that will be eliminated within an adjusted gross income (AGI) of $85,100000 (or $140,000 and you will $170,one hundred thousand, respectively, for those who document a combined return) a year.