Rick, who files as Head of Household, paid $2,650 in qualified interest on his student loan. His total income, Form 1040, line 22, is $35,000. He has no other adjustments on lines 23 through 35.
Rick is entitled to deduct $2,500 in interest paid on student loans. Rick's MAGI is below the phase-out range, so he is entitled to the maximum $2,500 deduction.
Click here to see Rick's completed Student Loan Interest Deduction Worksheet.