2. Deduct interest on your student loans
Interest on personal loans is usually not deductible, but in the case of a student loan, it might be. If you make less than $75,000, or if you are a couple that makes less than $150,000, you can deduct the interest that you paid on student loans for higher education.
The loans can be for your own education, your spouse’s, or a dependent. In any case, the student must have been enrolled in at least a half-time program. The rule for who qualifies as a dependent is more flexible for student-loan interest deductions than it is in other cases. For instance, you can claim someone as a dependent, even if you are the dependent of another taxpayer. And somebody can be your dependent, even if that person files a joint return with a spouse.