You can take this deduction only if all of the following apply.
- You paid interest in 2014 on a qualified student loan (defined later).
- Your filing status is any status except married filing separately.
- Your modified adjusted gross income (AGI) is less than: $80,000 if single, head of household, or qualifying widow(er); $160,000 if married filing jointly. Use lines 2 through 4 of the worksheet below to figure your modified AGI.
- You, or your spouse if filing jointly, are not claimed as a dependent on someone else's (such as your parent's) 2014 tax return.
Use the worksheet in these instructions to figure your student loan interest deduction.
Exception. Use Pub. 970 instead of the worksheet in these instructions to figure your student loan interest deduction if you file Form 2555, 2555-EZ, or 563, or you exclude income from sources within Puerto Rico.
Qualified student loan. A qualified student loan is any loan you took out to pay the qualified higher education expenses for any of the following ndividuals who was an eligible student.
1. Yourself or your spouse.
2. Any person who was your dependent when the loan was taken out.
3. Any person you could have claimed as a dependent for the year the loan was taken out except that:
a. The person filed a joint return,
b. The person had gross income that was equal to or more than the exemption amount for that year ($3,950 for 2014), or c. You, or your spouse if filing
jointly, could be claimed as a dependent on someone else's return.
However, a loan is not a qualified student loan if (a) any of the proceeds were used for other purposes, or (b) the loan was from either a related person or
a person who borrowed the proceeds under a qualified employer plan or a contract purchased under such a plan. For details, see Pub. 970.
Qualified higher education expenses.
Qualified higher education expenses generally include tuition, fees, room and board, and related expenses such as books and supplies. The expenses must
be for education in a degree, certificate, or similar program at an eligible educational institution. An eligible educational institution includes most colleges,
universities, and certain vocational schools. For details, see Pub. 970.