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Claiming the Credit You claim the lifetime learning credit by completing Form 8863 and submitting it with your Form 1040 or 1040-SR. Enter the credit on Schedule 3 (Form 1040), line 3. 4. Student Loan Interest Deduction What’s New Modified adjusted gross income (MAGI) limits. For 2022, the amount of your student loan interest deduction is gradually reduced (phased out) if your MAGI is between $70,000 and $85,000 ($145,000 and $175,000 if you file a joint return). You can’t claim the deduction if your MAGI is $85,000 or more ($175,000 or more if you file a joint re- turn). For more information, see Figuring the Deduction. Reminder No double benefit allowed You can’t deduct as interest on a student loan any interest paid by your employer after March 27, 2020, and before January 1, 2026, under an educational assistance program. See No Double Benefit Allowed. Introduction Generally, personal interest you pay, other than certain mortgage interest, isn't deductible on your tax return. However, if your MAGI is less than $85,000 ($175,000 if filing a joint return), you may be allowed a special deduc- tion for paying interest on a student loan (also known as an education loan) used for higher education. For most taxpayers, MAGI is the adjusted gross income (AGI) as figured on their federal income tax return before subtract- ing any deduction for student loan interest. This deduction can reduce the amount of your income subject to tax by up to $2,500. The student loan interest deduction is claimed as an adjustment to income. This means you can claim this de- duction even if you don't itemize deductions on Sched- ule A (Form 1040). This chapter explains: • What type of loan interest you can deduct, • Whether you can claim the deduction, • What expenses you must have paid with the student loan, • Who is an eligible student, • How to figure the deduction, and • How to claim the deduction. Student Loan Interest Deduction at a Glance This table summarizes the features of the student loan interest deduction. Don't rely on this table alone. Refer to the text for more details. Feature Description Maximum benefit You can reduce your income subject to tax by up to $2,500. Loan qualifications Your student loan: • Must have been taken out solely to pay qualified education expenses, and • Can't be from a related person or made under a qualified employer plan. Student qualifications The student must be: • You, your spouse, or your dependent (as defined later for this purpose); and • Enrolled at least half-time in a program leading to a degree, certificate, or other recognized educational credential at an eligible educational institution. Limit on MAGI $175,000 if married filing a joint return; $85,000 if single, head of household, or qualifying surviving spouse. Student Loan Interest Defined Student loan interest is interest you paid during the year on a qualified student loan. It includes both required and voluntary interest payments. Qualified Student Loan This is a loan you took out solely to pay qualified educa- tion expenses (defined later) that were: • For you, your spouse, or a person who was your de- pendent (as defined later for this purpose) when you took out the loan; • Paid or incurred within a reasonable period of time be- fore or after you took out the loan; and • For education provided during an academic period for an eligible student. Loans from the following sources aren't qualified stu- dent loans. • A related person. • A qualified employer plan. Table 4-1. Chapter 4 Student Loan Interest Deduction Page 31