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1.425 -Student Interest Loan Deduction (allowed Federally or by Massachusetts)

Item	Description	FY2010	FY2011	FY2012
1.425	Student Interest Loan Deduction (allowed Federally or by Massachusetts) Massachusetts allows as an option the federal "interest on education loans" deduction. The federal deduction phases out based on modified AGI. As a result of the 2005 Code Update, Massachusetts adopted the federal provision that temporarily repealed the 60 month limitation raised taxpayer income limitations through the end of 2010. Note that while the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA) and Jobs and Growth Tax Relief Reconciliation Act of 2003 (JEGTRRA) have been temporarily extended at the federal level, these increases still sunset in Massachusetts at the end of 2010. Alternatively, Massachusetts allows a deduction of undergraduate student loan interest. Filers may only choose one of these deductions. Origin: M.G.L. c. 62, S. 2(d)(1) and I.R.C. secs. 62(a)(17), ss 221. Estimate: $26.3	19.4	22.6	26.3

Key:

ORIGIN
IRC	Federal Internal Revenue Code (26 U.S.C.)
U.S.C	United States Code
M.G.L.	Massachusetts General Laws
Rev. Rul.; C.B.	Revenue Ruling; Cumulative Bulletin of the U.S. Treasury
ESTIMATES	All estimates are in $ millions.