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 As a result of the 2005 Code update, Massachusetts adopted the federal provision that temporarily repealed the 60-month limitation raised taxpayer income limitations through the end of 2010.
Alternatively, Massachusetts allows a deduction of undergraduate student loan interest. Filers may only choose one of these deductions.
Origin: M.G.L. c. 62, § 2(d)(1) and I.R.C. §§ 62(a)(17), 221.
Tax Type
Tax Expenditure
Item Number
Item Name
Description
Origin
FY2019
FY2020
FY2021
FY2022
FY2023
Personal Income Tax
Deductions from Adjusted Gross Income
1.425
Student Loan Interest 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 As a result of the 2005 Code update, Massachusetts adopted the federal provision that temporarily repealed the 60-month limitation raised taxpayer income limitations through the end of 2010. <BR><BR>Alternatively, Massachusetts allows a deduction of undergraduate student loan interest. Filers may only choose one of these deductions.
M.G.L. <a href="https://malegislature.gov/Laws/GeneralLaws/PartI/TitleIX/Chapter62/Section2" target="_blank">c. 62, § 2(d)(1)</a> and <a href="http://www.law.cornell.edu/uscode/html/uscode26/usc_sec_26_00000062----000-.html" target="_blank">I.R.C. §§ 62(a)(17)</a>, <a href="http://www.law.cornell.edu/uscode/html/uscode26/usc_sec_26_00000221----000-.html" target="_blank">221</a>.
43.2
46.0
49.5
53.5
58.1
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