Solved: My financial Aid for school did not process and it went into collections, I am paying it but can I claim it on my taxes and get some of it back?
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sarahfigueiredo
New Member

My financial Aid for school did not process and it went into collections, I am paying it but can I claim it on my taxes and get some of it back?

It went to collections , and I am now paying it off but I am wondering if I can reclaim it on my taxes and at least get some of it back.

1 Best answer

Accepted Solutions
DoninGA
Level 15

My financial Aid for school did not process and it went into collections, I am paying it but can I claim it on my taxes and get some of it back?

Student loan payments are not deductible on a tax return.  However, any student loan interest paid is deductible on federal tax return as an adjustment to income.

To enter student loan interest paid -

  • Click on Federal Taxes (Personal using Home and Business)
  • Click on Deductions and Credits
  • Click on I'll choose what I work on (if shown)
  • Scroll down to Education
  • On Student Loan Interest Paid (Form 1098-E), click the start or update button

Or enter student loan interest in the Search box located in the upper right of the program screen.  Click on Jump to student loan interest

View solution in original post

4 Replies
SweetieJean
Level 15

My financial Aid for school did not process and it went into collections, I am paying it but can I claim it on my taxes and get some of it back?

"financial Aid for school did not process"
Do you actually mean that your financial aid was declined, and your tuition went into collections?
DoninGA
Level 15

My financial Aid for school did not process and it went into collections, I am paying it but can I claim it on my taxes and get some of it back?

Student loan payments are not deductible on a tax return.  However, any student loan interest paid is deductible on federal tax return as an adjustment to income.

To enter student loan interest paid -

  • Click on Federal Taxes (Personal using Home and Business)
  • Click on Deductions and Credits
  • Click on I'll choose what I work on (if shown)
  • Scroll down to Education
  • On Student Loan Interest Paid (Form 1098-E), click the start or update button

Or enter student loan interest in the Search box located in the upper right of the program screen.  Click on Jump to student loan interest

View solution in original post

Hal_Al
Level 15

My financial Aid for school did not process and it went into collections, I am paying it but can I claim it on my taxes and get some of it back?

No. Not only are student loan payment not deductible; late payments to the the school (or their collection agency) are not deductible.

There is one exception. If the payments are for expenses incurred in the same year as the payment, the money can be counted towards an education credit or deduction. For example, if the payments you made in late 2017 were applied to spring 2017 tuition, you can use that.

SweetieJean
Level 15

My financial Aid for school did not process and it went into collections, I am paying it but can I claim it on my taxes and get some of it back?

But, as indicated above, the interest is deductible.
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