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Student Loan Interest Deduction Worksheet—Line 33 Keep for Your Records Form 1040—Line 33 1. Yourself or your spouse. most colleges, universities, and certain vo- cational schools. You must reduce the ex- Line 33 2. Any person who was your dependent penses by the following benefits. when the loan was taken out. Student Loan Interest • Employer-provided educational assis- 3. Any person you could have claimed Deduction tance benefits that are not included in box 1 as a dependent for the year the loan was taken out except that: of Form(s) W-2. You can take this deduction only if all of the following apply. • Excludable U.S. series EE and I sav- a. The person filed a joint return, ings bond interest from Form 8815. • You paid interest in 2009 on a quali- b. The person had gross income that was fied student loan (see below). • Any nontaxable distribution of quali- equal to or more than the exemption • Your filing status is any status except fied tuition program earnings. amount for that year ($3,650 for 2009), or married filing separately. • Any nontaxable distribution of Cover- c. You, or your spouse if filing jointly, • Your modified adjusted gross income dell education savings account earnings. could be claimed as a dependent on some- (AGI) is less than: $75,000 if single, head one else’s return. • Any scholarship, educational assis- of household, or qualifying widow(er); tance allowance, or other payment (but not $150,000 if married filing jointly. Use lines gifts, inheritances, etc.) excluded from in- The person for whom the expenses were 2 through 4 of the worksheet below to fig- come. paid must have been an eligible student ure your modified AGI. (see this page). However, a loan is not a • You, or your spouse if filing jointly, For more details on these expenses, see qualified student loan if (a) any of the pro- are not claimed as a dependent on Pub. 970. ceeds were used for other purposes, or (b) someone’s (such as your parent’s) 2009 tax the loan was from either a related person or return. Eligible student. An eligible student is a a person who borrowed the proceeds under person who: a qualified employer plan or a contract pur- Use the worksheet below to figure your chased under such a plan. To find out who student loan interest deduction. • Was enrolled in a degree, certificate, is a related person, see Pub. 970. or other program (including a program of Exception. Use Pub. 970 instead of the study abroad that was approved for credit worksheet below to figure your student Qualified higher education expenses. by the institution at which the student was loan interest deduction if you file Form Qualified higher education expenses gener- enrolled) leading to a recognized educa- 2555, 2555-EZ, or 4563, or you exclude ally include tuition, fees, room and board, tional credential at an eligible educational income from sources within Puerto Rico. and related expenses such as books and institution, and supplies. The expenses must be for educa- Qualified student loan. A qualified student • Carried at least half the normal tion in a degree, certificate, or similar pro- loan is any loan you took out to pay the full-time workload for the course of study gram at an eligible educational institution. qualified higher education expenses for any he or she was pursuing. An eligible educational institution includes of the following individuals. Before you begin:  Figure any write-in adjustments to be entered on the dotted line next to line 36 (see the instructions for line 36 on page 35).  Be sure you have read the Exception above to see if you can use this worksheet instead of Pub. 970 to figure your deduction. 1. Enter the total interest you paid in 2009 on qualified student loans (see above). Do not enter more than $2,500 1. 2. Enter the amount from Form 1040, line 22 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2. 3. Enter the total of the amounts from Form 1040, lines 23 through 32, plus any write-in adjustments you entered on the dotted line next to line 36 . . . . . . . . . . . . . . . . . . . . . . . . .3. 4. Subtract line 3 from line 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4. 5. Enter the amount shown below for your filing status. • Single, head of household, or qualifying widow(er)—$60,000 } . . . . . . . . . . .5. • Married filing jointly—$120,000 6. Is the amount on line 4 more than the amount on line 5? Skip lines 6 and 7, enter -0- on line 8, and go to line 9. No. Subtract line 5 from line 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6. Yes. 7. Divide line 6 by $15,000 ($30,000 if married filing jointly). Enter the result as a decimal (rounded to at least three places). If the result is 1.000 or more, enter 1.000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7. . 8. Multiply line 1 by line 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8. 9. Student loan interest deduction. Subtract line 8 from line 1. Enter the result here and on Form 1040, line 33. Do not include this amount in figuring any other deduction on your return (such as on Schedule A, C, E, etc.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9. Need more information or forms? See page 96. - 34 -