If you file an itemized tax return, you can deduct up to $2,500 of student loan interest. I do itemize my taxes each year so this deduction is very helpful. However, both my wife and I both pay student loan interest per year to the tune of about $6000. While doing my taxes last year with one of the popular tax software tools, I soon realized that we could only deduct $2,500 of student loan taxes per return.

 

I initially thought the tax software program I was using had a bug or a glitch in it. After doing some digging, the tax software was right. Maybe it’s just me, but I think the gov has it wrong. I feel you should be able to deduct up to $2,500 of student loan interest per individual each year. For my wife and I to be able to deduct our student loan interest, we would have to file separately, which would give us less deductions. Seems to be a catch 22.

 

I recommend that the nerds writing the tax laws make it so that student loan payers can deduct up to $2,500 per individual, regardless of their filing status. Better yet, I wouldn’t mind if they increased the student loan interest tax deduction to $3,000 per individual.

 

Right now, 10% of my take home pay is going toward my student loan payment. Ten percent may not sound like a lot, but it certainly is to me. Like the millions of other Americans struggling with student loan payments, I could certainly use any extra text breaks congress wants to send my way.