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New Member
posted Jun 6, 2019 2:56:28 AM

I got a loan to pay divorce settlement

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?

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1 Best answer
Expert Alumni
Jun 6, 2019 2:56:30 AM

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

6 Replies
Expert Alumni
Jun 6, 2019 2:56:30 AM

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

New Member
Jun 6, 2019 2:56:32 AM

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

Expert Alumni
Jun 6, 2019 2:56:33 AM

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

New Member
Jun 6, 2019 2:56:34 AM

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?

Expert Alumni
Jun 6, 2019 2:56:36 AM

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

New Member
Jun 6, 2019 2:56:37 AM

ok, thank you