I got a loan to pay divorce settlement

[burgrn90]

My ex wife's student loan is now my responsibility.  In a settlement with Reimer Law from a lawsuit I am paying $43.75 per week until the total loan in excess of $10,000 is paid in full. Can the $2,275 I paid in last year be deducted?

[MinhT · Accepted solution]

You cannot deduct the full amount. You can only deduct the interest part as a student loan interest deduction.

[burgrn90]

Where do I add the deduction? Is it under tax breaks?

[MinhT]

Go to Federal Taxes > Deductions & Credits > Education > Student loan interest (form 1098-E)

[burgrn90]

Ok, so this is a settlement payment from a lawsuit after a divorce. I make the payments directly to the Law office from the suit. The original loan was through National Collegiate Student Loan Trust but was sent through the courts soon after my divorce settlement.  I did not receive a 1098-E. Is that required to file?

[MinhT]

You need to obtain the amount of interest from the law firm.

[burgrn90]

ok, thank you