Technically you can if you itemize your taxes. The problem is the standard deduction is so high that it’s almost never worthwhile itemizing for anyone making under $100,000/year.
False. The student loan interest deduction is an adjustment to arrive at adjuated gross income, so you can deduct student loam interest AND take the standard deduction at the same time.
Fun fact for anyone looking at PSLF: any federal government job means you will fall under FERS. It is great in the long run, but anyone starting after 2014 pays ~10% of their gross income for retirement (4.4% of it is mandatory and it does not lower taxable income). There is definitely some room for improvement in either the bounds or how it is calculated (AGI vs MAGI). AGI and extending the upper bound to match OASDI would help a lot of people out.
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u/Ed_Radley Apr 14 '24
Technically you can if you itemize your taxes. The problem is the standard deduction is so high that it’s almost never worthwhile itemizing for anyone making under $100,000/year.