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d-brown5707
New Member

Student loan compromise is tax deductible?

I have paid off my student loans in a one time payment compromise. Is that tax deductible?
2 Replies
DoninGA
Level 15

Student loan compromise is tax deductible?

Paying off the student loan is not deductible on a tax return.

Only the student loan interest paid on the loan in 2020 can be entered on a 2020 federal tax return as an adjustment to income.  Student loan interest paid is reported to you on a Form 1098-E

Hal_Al
Level 15

Student loan compromise is tax deductible?

The other question you may have is: is the amount of the loan forgiven (eliminated) taxable to you.

It is if they issue a form 1099-C  to you. 

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