26 U.S.C. § 221: Interest on education loans

In the case of an individual, there shall be allowed as a deduction for the taxable year an amount equal to the interest paid by the taxpayer during the taxable year on any qualified education loan. Except as provided in paragraph (2), the deduction allowed by subsection (a) for the taxable year shall not exceed $2,500. The amount which would (but for this paragraph) be allowable as a deduction under this section shall be reduced (but not below zero) by the amount determined under subparagraph (B). the taxpayer’s modified adjusted gross income for such taxable year, over $50,000 ($100,000 in the case of a joint return), bears to $15,000 ($30,000 in the case of a joint return). without regard to this section and sections 85(c) 1 911, 931, and 933, and 1 So in original. Probably should be followed by a comma. after application of sections 86, 135, 137, 219, and 469. No deduction shall be allowed by this section to an individual for the taxable year if a deduction under section 151 with respect to such individual is allowed to another taxpayer for the taxable year beginning in the calendar year in which such individual’s taxable year begins. which are incurred on behalf of the taxpayer, the taxpayer’s spouse, or any dependent of the taxpayer as of the time the indebtedness was incurred, which are paid or incurred within a reasonable period of time before or after the indebtedness is incurred, and which are attributable to education furnished during a period during which the recipient was an eligible student. the amount excluded from gross income under section 127, 135, 529, or 530 by reason of such expenses, and the amount of any scholarship, allowance, or payment described in section 25A(g)(2). The term “eligible student” has the meaning given such term by section 25A(b)(3). The term “dependent” has the meaning given such term by section 152 (determined without regard to subsections (b)(1), (b)(2), and (d)(1)(B) thereof). No deduction shall be allowed under this section for any amount for which a deduction is allowable under any other provision of this chapter, or for which an exclusion is allowable under section 127 to the taxpayer by reason of the payment by the taxpayer’s employer of any indebtedness on a qualified education loan of the taxpayer. The deduction otherwise allowable under subsection (a) (prior to the application of subsection (b)) to the taxpayer for any taxable year shall be reduced (but not below zero) by so much of the distributions treated as a qualified higher education expense under section 529(c)(9) with respect to loans of the taxpayer as would be includible in gross income under section 529(c)(3)(A) for such taxable year but for such treatment. If the taxpayer is married at the close of the taxable year, the deduction shall be allowed under subsection (a) only if the taxpayer and the taxpayer’s spouse file a joint return for the taxable year. Marital status shall be determined in accordance with section 7703. such dollar amount, multiplied by the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting “calendar year 2001” for “calendar year 2016” in subparagraph (A)(ii) thereof. If any amount as adjusted under paragraph (1) is not a multiple of $5,000, such amount shall be rounded to the next lowest multiple of $5,000.