Based on the Modified Adjusted Gross Income (MAGI) on a return, the student loan interest deduction allowed on the return may be phased out or eliminated. The TaxAct program automatically calculates the eligible amount of student loan interest deduction for the return, based on the student loan interest expense entered in the program (in conjunction with the amount of modified adjusted gross income reflected on the return). The supporting calculations are in the Student Loan Interest Deduction Worksheet.

If the taxpayer paid a lender more than $600 in interest, they should receive a Form 1098-E Student Loan Interest Statement that lists the total interest payments to that lender. For additional information, go to the “Student Loan Interest Deduction” section of IRS Publication 970 Tax Benefits for Education.

To enter student loan interest in the TaxAct program, go to our Form 1098-E – Entering Student Loan Interest in Program FAQ.

To view the Student Loan Interest Deduction Worksheet (this worksheet mirrors the IRS calculations as explained in IRS Publication 970):

TaxAct Online

1. From within the TaxAct return (Online), click the Print Center dropdown, then click Custom Print.
2. In the Documents and Worksheets section, scroll down and click the checkbox next to Federal Form 1040 Student Loan Interest – $X.XX Deduction.
3. Click Print, then click the PDF link that is provided for printing. Click the Print icon, then click Print in the dialog box that appears.

NOTE: If you see a message indicating that return fees have not been paid, click the View/Pay your return fees link, which will direct you through the Paper Filing steps. Continue through the screens until you have processed the payment for the product fees and then repeat the steps to print.

Desktop

1. From within your TaxAct Desktop return, click Forms in the options bar to view Forms Explorer (if it is not already visible).
2. Click Federal from the dropdown in Forms Explorer, then click the Worksheets dropdown.
3. Scroll down and click Form 1040 Student Loan Interest – Student Loan Interest Deduction Worksheet to open a form you already created in Forms View, then click the Print current form icon at the top of Forms View.
4. A print dialog box appears, so you can choose what printer to use and more options. Click Ok when you are ready to print.

Related Links

• Individuals – Student Loan Interest Deduction Worksheet
• Student Worksheet Entries
• Form 1098-E – Entering Student Loan Interest in Program