Can I take the tax credit for my school loans that...
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statecare
New Member

Can I take the tax credit for my school loans that got paid by an offset from my last years return

Last year 7000$ of my return was offset to repay school loans . Can I claim any of that as interest payed on this years tax return
2 Replies
BillM223
Employee Tax Expert

Can I take the tax credit for my school loans that got paid by an offset from my last years return

In a word, no.

 

Sorry, but principal payments for such loans are not deductible.

 

And you can't deduct the interest on a student loan unless you receive a 1098-E form in the mail. Note that this is independent of how the loan is repaid.

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Carl
Level 15

Can I take the tax credit for my school loans that got paid by an offset from my last years return

Once you defaulted on the loan, it instantly lost it's "qualified" student loan status. Therefore, if you didn't get a 1098-E, the loan is no longer a qualified loan and nothing concerning the loan is deductible on any tax return.

 

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