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Can I deduct college payments

 
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2 Replies

Can I deduct college payments

If you are not a student and paying for the student loan, the loan payment is not deductible on a tax return.

 

However, interest paid on the student loan is deductible.

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

Hal_Al
Level 15

Can I deduct college payments

There is a tax credit (not a deduction) for paying tuition.  

 

In TurboTax (TT), enter at:

Federal Taxes Tab (Personal for H&B version)

Deductions & Credits

-Scroll down to:

--Education

  --Education Expenses and Scholarships

 

If the student is a dependent, then his parents claim the credit, not him.

 A full time unmarried student, under age 24, even if you don't qualify as a dependent, is only eligible for the refundable portion of the American Opportunity Credit if he supports himself by working. You cannot be supporting yourself on parental support, 529 plans or student loans & grants. It is usually best if the parent claims that credit. 

You cannot claim a credit if you are, or can be, claimed as a dependent by someone else.

Reference: Line 7 instructions for form 8863. https://www.irs.gov/instructions/i8863

 

A non dependent student with tax liability, or a student over 23 can claim some of the credit.

 

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