You can deduct up to $2,500 in interest if you meet the income limits. By Kimberly Lankford, Contributing Editor May 20, 2013 What are the rules for deducting student-loan interest on my tax return?SEE ALSO: New Pay-as-You-Earn Student Loan Repayment Plan Up to $2,500 in student-loan interest can be tax-deductible in 2013 if your modified adjusted gross income is less than $60,000 if you’re single or $125,000 if you are married and file a joint return. The deduction is phased out at higher income levels, disappearing completely if you earn more than $75,000 if single or $155,000 if filing a joint return. Sponsored Content You can take the deduction regardless of whether you itemize deductions. Even if your parents pay the interest on a loan for which you are liable, you can deduct the interest, as long as you are not claimed as a dependent on your parents’ tax return. For more information about the tax rules, see IRS Publication 970, Tax Benefits for Education. And for more information about student loans, see our Student Loan Special Report. Got a question? Ask Kim at firstname.lastname@example.org.