For 2025, the $2,500 maximum deduction for interest paid on student loans—called qualified education loans—will begin to phase out for taxpayers with modified adjusted gross income above $85,000 ($170,000 for joint returns) and will completely phase out for taxpayers with modified adjusted gross income of $100,000 or more ($200,000 or more for joint returns).
For the 2025 tax year, the adjusted gross income (AGI) amount for joint filers to determine the reduction in the Lifetime Learning Credit is $160,000; the AGI amount for single filers is $80,000. That amount is not adjusted for inflation for taxable years beginning after December 31, 2020.
In 2025, the amount of the eligible educator deduction allowed in connection with books, supplies (other than nonathletic supplies for courses of instruction in health or physical education), computer equipment (including related software and services) and other equipment, and supplementary materials used by the eligible educator in the classroom is $300. That amount remains unchanged from 2024.