Should I consider college loans when filing?

This answer was provided by Mark Misselbeck, Levine Katz Nannis & Solomon PC, Needham.

Q: I am a recent college graduate, and I have about 20,000 in federal loans. Should I consider these when filling out my tax forms? - Colleen, Boston

A: The only benefit that may be available from student loans is a limited deduction for the interest paid on the loans during the year. The limit on your federal return is a deduction of $ 2,500 and may be decreased (or eliminated) if your income for the year is high enough. There is a worksheet in the instructions for the return on which to make the calculation. MA also has a deduction, with a similar worksheet in their instructions.