Student loan interest
As soon as you can claim your own exemption, you can also start deducting interest paid on your student loans. You can write off up to $2,500 a year in interest on those loans.
Even if your parents pay interest on a loan for which you are liable, you may qualify to deduct that interest. You will need to use Form 1040A or 1040 to claim the interest paid. However, you do not have to itemize your deductions on Schedule A to get this deduction. TurboTax will automatically pick the right forms for you.
For 2014, the ability to claim this deduction phases out at higher income levels, starting at modified adjusted gross income of $60,000 for unmarried individuals and $125,000 for married couples filing jointly. The deduction phases out as your modified adjusted gross income increases and the deduction is eliminated when it reaches $75,000 for unmarried individuals and $155,000 for married couples filing jointly.