Do my wife and I (filing jointly) still deduct for our student loans if our parents covered payments for 2020?

[jcolehooker]

Our parents were able to cover our student loan payments throughout 2020. In fact, it was well in excess of the minimum amounts we paid ourselves before they took over. Now here we are, with our 2020 tax statements showing that we paid off a fat chunk of interest, thus making us eligible for more returns. Does the government frown on this?

[KrisD15]

You MAY claim the interest paid. 

No, the IRS would not frown upon you for claiming the interest on your return.

According to the IRS:

“Interest paid by others. If you are the person legally obligated to make interest payments and someone else makes a payment of interest on your behalf, you are treated as receiving the payments from the other person and, in turn, paying the interest. “

IRS Pub 970 see page 34