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I have student loans, can I claim my tuition on my taxes even if paid by student loans?

 
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3 Replies

I have student loans, can I claim my tuition on my taxes even if paid by student loans?

You can enter qualified education expenses on a tax return regardless if they were paid from a student loan provided you are not being claimed as a dependent on someone else's tax return.
Carl
Level 15

I have student loans, can I claim my tuition on my taxes even if paid by student loans?

Sure. But any education credits you qualify for are based on *EARNED* income. so if you have no earned income for the entire tax year, you get no credits. Remember, borrowed money is *Not* your money. It never was, is not now, and never will be.
If you are an undergraduate under the age of 24 on Dec 31 of the tax year, then chances are very, very, very high that it's your parents that will claim you as a dependent on their tax return, and they will be the ones to claim all education credits if they qualify to do so. So if you are "in fact" an undergraduate, then if you want I'll be happy to post "the whole shebang" on this education stuff. It's about 2 typewritten pages long.
Hal_Al
Level 15

I have student loans, can I claim my tuition on my taxes even if paid by student loans?

Yes. Tuition and other qualified expenses, paid with loans (but not scholarships) is considered as paid by you. You have to eventually  pay off those loans, so it really is your money.

So, if you have enough income to have a tax liability, you may claim an education credit.

BUT

There's a new urban myth among college students that says they can get a $1000 from the government just for filing a tax form. For most of them, they simply aren't eligible. A student, under age 24, 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.


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