What portion of the tax code refers to student loans and how much can be deducted?

ANSWER

The BIDaWIZ Team's Answer:

Please refer to Section 221 of the IRC for student loan interest deductions. Generally, the amount you may deduct is the lesser of $2,500 or the amount of interest you actually paid. However, the amount your can deduct may be limited and disqualify you entirely if your modified adjusted gross income exceeds certain thresholds. Specifically, if your income is over $60,000 but under $75,000 ($125,000 to $155,000 for married people filing jointly), then your deduction for student loan interest will be prorated. If your income is over $75,000 ($155,000 for married people filing jointly), then your student loan interest is not deductible at all. Married persons filing separately are not eligible for the student loan interest deduction. Please refer to Section 108(f) of the IRC for details on student loan debt forgiveness.