How can you Do the Student loan Attention Deduction? Now, let’s say you happen to be partnered and filing together. You paid back $2,five hundred in student loan notice just last year, plus taxable earnings is $165,100000. $165,one hundred thousand $140,00 (or $twenty five,100 / $30,100 = 0.833 or 83.3%) Proliferate $2,five-hundred of the 0.833% for all in all, $2,083 Subtract $dos,083 regarding the $2,five-hundred you paid in education loan desire Using student loan notice deduction is actually contrary to popular belief easy.