Last-minute tax tips
Don't miss out on student loan interest deductions
The rules for the deduction of student loan interest can be tricky. Many college students or young workers may not deduct the interest paid on their student loans if their parents paid that interest and claimed an exemption for them on their tax return.
However, taxpayers who are not claimed as dependents on their parents' returns can claim up to $2,500 in deductions for student loan interest, even if someone else is paying off the loan or interest, as long as the loan is in their name. Remember to check the limitations on eligibility for the student interest deduction based on your modified adjusted gross income.