Student loan interest add-back update.

Last Updated September 29, 2016

The student loan interest add-back is not required after the 2012 tax year. 

Additional information is available for use in figuring the student loan interest add-back for the 2011 tax year.

  1. First, no add-back is required for the 2010 tax year.
  2. Second, for Indiana add-back purposes for 2011, 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.

  1. 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.

For additional information for use in figuring the student loan interest add-back for the 2012 tax year, please see the tax form instructions for that year.