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Student Loan Interest Deductions, 1098-e

If my parents took out a student loan for me but I make all of the payments, can I deduct the Student Loan Interest received by the lender? Thank you.
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1 Reply
IreneS
Intuit Alumni

Student Loan Interest Deductions, 1098-e

Maybe.  According to IRS Pub. 970 - Tax Benefits for Education:

Generally, you can claim the deduction if all of the following requirements are met.

  • Your filing status is any filing status except married filing separately.
  •  No one else is claiming an exemption for you on his or her tax return.
  • You are legally obligated to pay interest on a qualified student loan.
  • You paid interest on a qualified student loan.

If we assume that you are not married, and you said that you paid the interest, the questions are:

  1. Are your parents claiming you as a dependent on their return?
  2. Are you legally obligated on the loan?

If the answer to #1 is No and #2 is Yes, then you can claim the interest. 


Instructions for entering student loan interest are contained in the following FAQ:

https://ttlc.intuit.com/replies/4801974



For more information you can go to IRS Pub. 970 - Tax Benefits for Education.






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