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New Member
posted May 31, 2019 7:05:42 PM

I have student loans in my name and the federal parent student loans. If i pay my parent student loans can i claim the interest paid on those?

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2 Best answers
New Member
May 31, 2019 7:05:44 PM

Unfortunately, no. You can take the student loan interest deduction for interest that you paid on the student loans in your name, but you cannot deduct interest on loans that are in your parents’ names.

You can claim the deduction only if all of the following apply:

  • You paid interest on a qualified student loan in tax year 2016;
  • You're legally obligated to pay interest on a qualified student loan;
  • Your filing status isn't married filing separately;
  • Your MAGI is less than a specified amount which is set annually; and
  • You or your spouse, if filing jointly, can't be claimed as dependents on someone else's return.

For more information, please see IRS Tax Topic 456 - Student Loan Interest Deduction.

Expert Alumni
Jan 28, 2020 4:06:33 PM

If your father's name is on the loan, then he would receive the 1098 and be eligible to take the credit.  You can't take the credit because you are not obligated to pay the loan.  But your father can take credit.  You making the payments directly is the same as you giving him money and him making the payments on the loan.  The payments are credited to him.  

9 Replies
New Member
May 31, 2019 7:05:44 PM

Unfortunately, no. You can take the student loan interest deduction for interest that you paid on the student loans in your name, but you cannot deduct interest on loans that are in your parents’ names.

You can claim the deduction only if all of the following apply:

  • You paid interest on a qualified student loan in tax year 2016;
  • You're legally obligated to pay interest on a qualified student loan;
  • Your filing status isn't married filing separately;
  • Your MAGI is less than a specified amount which is set annually; and
  • You or your spouse, if filing jointly, can't be claimed as dependents on someone else's return.

For more information, please see IRS Tax Topic 456 - Student Loan Interest Deduction.

Not applicable
Jan 28, 2020 3:41:16 PM

The money that I paid my student loan that are in my parents name, will they be able to claim the student loan interest?

Expert Alumni
Jan 28, 2020 3:50:44 PM

Yes, as long as they meet the following guidelines, they can claim the interest.  They can claim the deduction if all of the following apply:

  • You paid interest on a qualified student loan in tax year 2019.
  • You can take the deduction as a student, or as a parent making payments on your dependent student’s loan. However, you or your spouse, if filing jointly, can't be claimed as dependents on someone else's return.
  • You're legally obligated to pay interest on a qualified student loan.
  • Your filing status isn't married filing separately.
  • Your MAGI is less than a specified amount, which is set annually.

A qualified student loan is a loan you took out solely to pay qualified higher education expenses that were:

  • For you, your spouse, or a person who was your dependent when you took out the loan.
  • For education provided during an academic period for an eligible student.
  • Paid or incurred within a reasonable period of time before or after you took out the loan.

Not applicable
Jan 28, 2020 3:57:40 PM

But what if the parent receives a 1098-e but the son had made the payments.  Will the father be able to claim the amount on the 1098 E on his tax return?  And what happens if the father does claim this?

Expert Alumni
Jan 28, 2020 4:06:33 PM

If your father's name is on the loan, then he would receive the 1098 and be eligible to take the credit.  You can't take the credit because you are not obligated to pay the loan.  But your father can take credit.  You making the payments directly is the same as you giving him money and him making the payments on the loan.  The payments are credited to him.  

New Member
Mar 25, 2020 2:43:42 PM

What if you're not a dependent, filing single. Can I give my parent the 1098-E form to file?

 

I am single and making payments to my student loan under my parent's name. I cannot claim it and they do not claim me as a dependent. Can they file it in their taxes?

Expert Alumni
Mar 25, 2020 2:48:08 PM

Only the person who is legally obligated to pay the loan can deduct it.  So it depends on who's name(s) are on the note.

New Member
Mar 25, 2020 2:56:38 PM

Thanks! 

 

So because my parent's name is on it but I'm paying it means they are also unable to claim it?

Expert Alumni
Mar 25, 2020 3:13:32 PM

If you parents name is on the student loan and they are legally obligated to pay the loan, they can deduct the student loan interest.