Paying off a student loan

When you start paying off a student loan, you automatically get a tax deduction for the interest on the loan. This is shown on your tax assessment notice (årsopgørelse).

If you would like to spread the tax deduction over the first year when you start paying off the loan, you need to correct your preliminary income assessment (forskudsopgørelse).

When, at some point, you have used the entire tax deduction for the interest, you need to change your preliminary income assessment again.

Below is a step-by-step guide showing you how to correct your preliminary income assessment:

  1. Log on to skat.dk/tastselv with your NemID.
  2. Select Forskudsopgørelsen 2020 (Preliminary income assessment 2020).
  3. Go to field 489 - Renteudgifter af studielån (Interest expenses on student loans) and enter your deduction for interest expenses. See example. Click on the question mark next to the field for more information.
    If the field is not visible, go to Andre felter (Other fields) select Fradrag (Deductions).
  4. If you have had other income during the year, you need to check that the correct amounts are entered in your preliminary income assessment. The amounts should be entered before tax.
    • Go to Oftest tilføjede felter (Frequently added fields) and select Indkomst og betalt skat indtil ændring (Income and tax paid up to date of change).
    • You will find three calculators by the fields. They will give you an overview of your income and paid A-tax that we have registered about you up until now. Click on one of the calculators and check that the numbers are correct. If you did not receive a salary, state educational grant or production grant for one or more months and therefore did not pay A-tax, please enter a "0" in the relevant fields for that month.
    • Click Overfør (Transfer) in the left corner.
  5. Select Beregn (Calculate) at the bottom of the page and check that your numbers are correct.
  6. Select Godkend (Accept).

Thank you - you are done!

Please contact the Danish Tax Agency (Skattestyrelsen) if you have any questions.

 

Facts

  • You are entiteld to a tax deduction when you start paying off your student loan. 
  • If you want the deduction right away, you need to change your preliminary income assessment the first year you start paying off your loan. 
  • The deduction is automatically included in your tax assessment notice, which comes in March.