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Can I use my student loan as an education credit even if I didn’t pay off the loan yet?

EDIT: I’ve attached a copy of my 2016 1098T. Is this all I need to send? Line 1 is blank. 



I received a notice of deficiency from the irs saying I owe $1225 from 2016. When I called them, I was told I need to prove my education credits. I received a student loan in 2016(which I’m still paying on in 2019) for $1200. Can I use the loan to prove I paid $1200 & use it towards my education credits? 

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3 Replies

Can I use my student loan as an education credit even if I didn’t pay off the loan yet?

Yes, the student loan will help but a 1098T from the college for 2016 would be even better.

If you can't get that, get a statement from the school of the amounts paid in 2016.

A student loan --means just that, you got a loan to go to school, however it does not mean you actually went or paid for classes, so I would get more information to give to the IRS so they do not adjust the 2016 return.

Hal_Al
Level 15

Can I use my student loan as an education credit even if I didn’t pay off the loan yet?

Tuition and other qualified expenses paid, by loans, counts as paid by you.  That was considered YOUR money, since you are obligated to pay it back.
The IRS notice was probably instigated by the school using box 2 of the 1098-T, instead of box 1.
I agree with TurboTaxMichaelL1, you just need to send them copies of school billing statements showing the payments credited to your account

Can I use my student loan as an education credit even if I didn’t pay off the loan yet?

Edited
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