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kay0391la-
New Member

As a parent I paid student loan interest and loan payment to my non-dependent child, what tax benefit can I expect?

 
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Hal_Al
Level 15

As a parent I paid student loan interest and loan payment to my non-dependent child, what tax benefit can I expect?

You may claim the student loan interest adjustment to income ("above the line deduction"), of up to $2500, if:

1. You are legally obligated to pay it. That is, you are "on the loan" either as principal or co-signer and

2. The student was your dependent at the time the loans were used to pay tuition and other qualified expenses. 


If you are unable to claim the deduction, your daughter may claim it on her own return, since the payment is essentially a gift from you to her. But, it would be better (to pass IRS scrutiny) if you gave the money to her and let her pay it

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Hal_Al
Level 15

As a parent I paid student loan interest and loan payment to my non-dependent child, what tax benefit can I expect?

You may claim the student loan interest adjustment to income ("above the line deduction"), of up to $2500, if:

1. You are legally obligated to pay it. That is, you are "on the loan" either as principal or co-signer and

2. The student was your dependent at the time the loans were used to pay tuition and other qualified expenses. 


If you are unable to claim the deduction, your daughter may claim it on her own return, since the payment is essentially a gift from you to her. But, it would be better (to pass IRS scrutiny) if you gave the money to her and let her pay it

View solution in original post

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