Complete Tax

If you paid interest on a student loan in 2009, you may be eligible to deduct some or all of the interest you paid, whether the loan was for your own education, your spouse's, or that of a child or anyone else who was your dependent at the time the education was undertaken. The student loan interest deduction can reduce the amount of your income subject to tax by up to $2,500 in 2009.

This deduction is taken as an adjustment to income. This means you can claim this deduction even if you do not itemize deductions on Schedule A (Form 1040).