What is the maximum student loan interest deduction allowed for a taxpayer?

The maximum student loan interest deduction allowed for a taxpayer is indeed $2,500. This deduction allows individuals who have paid interest on qualified student loans to reduce their taxable income, thereby lowering their tax liability.

To qualify for this deduction, the taxpayer must meet certain criteria, including income limits and filing status. The deduction is available for interest paid on qualified student loans during a tax year, and the maximum amount that can be deducted per year is capped at $2,500 per taxpayer. This deduction is particularly beneficial for individuals who are in the early stages of their careers and are managing their student loan repayments, as it effectively provides tax relief during this period.

The amount allowed can be phased out for higher income taxpayers, ensuring that the benefit primarily aids those who need it most. The combination of these rules reinforces the usefulness of this deduction, making $2,500 the correct maximum amount that taxpayers can claim.