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DOR > Individual Income Taxes > Student loan interest add-back update. Student loan interest add-back update.

Last Updated April 2, 2012

Additional information is now available for use in figuring the student loan interest add-back.

  1. First, no add-back is required for the 2010 tax year.
  1. Second, for Indiana add-back purposes for 2011 going forward, an individual must refigure his or her deduction as reported on the federal tax return using the following amounts as qualifiers:
    1. the phaseout ranges for 2011 (as adjusted for inflation) are reduced to $45,000 to $60,000 ($70,000 to $85,000 for joint returns)*,
    2. the interest is not deductible beyond the first 60 months that interest payments are required, and
    3. there is no deduction for voluntary payments of interest.

Any required add-back will be the difference between the refigured deduction and the student loan interest deduction as reported on your 2011 federal income tax return, Form 1040, line 33, or Form 1040A, line 18.

Add the difference back on Schedule 1, line 7 (if filing Form IT-40), or on Schedule B, line 5 (if filing the Form IT-40PNR). Indicate the add-back by using code 128.

*The reduced phaseout ranges for the 2012 tax year and beyond are $50,000 to $65,000 ($75,000 to $90,000 for joint returns).

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