Tax Provisions

AJCU has worked extensively to maintain a number of tax provisions that have been important to our Jesuit institutions and to higher education throughout the years. By providing tax credits, deductions, and other benefits, primarily to middle class families, most of these provisions have assisted students and parents in offsetting the cost of higher education. Other provisions have benefited our institutions by incentivizing donations and by supporting research and development at our colleges and universities. For this reason, AJCU will continue to support the preservation of the following tax provisions:

Select Provision Described:

Individuals with a modified adjusted gross income (MAGI) of less than $75,000 ($150,000 for joint returns) are eligible to receive a deduction allowed for paying interest on student loans. This tax deduction can reduce income subject to tax by $2,500.

Maximum Credit: Can reduce your income subject to tax by up to $2,500

Limit on modified adjusted gross income (MAGI): $155,000 for married couples filing a joint return; $75,000 if single, head of household

Time limit on deduction: Can deduct interest paid during the remaining time of the student loan

Loan qualifications:

  • Must have been taken out solely for paying qualified education expenses
  • Cannot be from a related person or made under a qualified employer

Student qualifications: Must be enrolled at least half-time in a degree program

Calculating the Deduction: For 2013 the smaller amount of $2,500; or the interest you paid in 2013.

*Information from the IRS Publication 970, “Tax Benefits for Education.” More information can be found in the Publication