Individual Income Tax Filing: Statutory Adjustments: Student Loan Interest Deduction

SLITDDA • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

13,446,141.00

Year-over-Year Change

205.68%

Date Range

1/1/1999 - 1/1/2016

Summary

The Student Loan Interest Deduction trend measures the amount of student loan interest that U.S. taxpayers are able to deduct from their individual income taxes. This deduction helps make higher education more affordable and accessible.

Analysis & Context

This economic indicator provides valuable insights into current market conditions and economic trends. The data is updated regularly by the Federal Reserve and represents one of the most reliable sources for economic analysis.

Understanding this metric helps economists, policymakers, and investors make informed decisions about economic conditions and future trends. The interactive chart above allows you to explore historical patterns and identify key trends over time.

About This Dataset

The Student Loan Interest Deduction is a federal income tax deduction that allows eligible taxpayers to deduct a portion of the interest paid on their student loans. This deduction helps offset the cost of higher education and can provide important financial relief for borrowers.

Methodology

The data is collected by the U.S. Internal Revenue Service from individual income tax returns.

Historical Context

This deduction is a key policy tool used to support higher education access and attainment.

Key Facts

  • The student loan interest deduction can reduce taxable income by up to $2,500 per year.
  • Over 12 million taxpayers claimed the student loan interest deduction in 2020.
  • The deduction phases out for higher-income filers with modified adjusted gross incomes above $70,000 (single) or $140,000 (married filing jointly).

FAQs

Q: What does this economic trend measure?

A: The Student Loan Interest Deduction trend measures the total amount of student loan interest that U.S. taxpayers are able to deduct from their individual income taxes each year.

Q: Why is this trend relevant for users or analysts?

A: This trend is relevant because the student loan interest deduction is an important policy tool for making higher education more accessible and affordable for borrowers.

Q: How is this data collected or calculated?

A: The data is collected by the U.S. Internal Revenue Service from individual income tax returns filed each year.

Q: How is this trend used in economic policy?

A: The student loan interest deduction is used by policymakers and economists to evaluate the effectiveness of efforts to support college access and affordability.

Q: Are there update delays or limitations?

A: There may be lags in data availability as the IRS compiles and publishes the information from individual tax returns.

Related Trends

Citation

U.S. Federal Reserve, Individual Income Tax Filing: Statutory Adjustments: Student Loan Interest Deduction (SLITDDA), retrieved from FRED.