Student loan interest with multiple state tax return.

We moved from Indiana to California in 2016. We paid more than the $2500 maximum credit for the Federal. Both Indiana and California ask the amount of student loan interest earned while the resident in the respective states. Should we divide that by the number of months we lived in each state? Or should I claim it in our current resident state, i.e. California? Or should we look at each month and figure out how much interest we paid and allocate it that way?

3282

New Member

Jun 1, 2019 3:33:43 PM

Unless your student loan servicer provides you with an amortization schedule showing the monthly breakdown between principal repayment and interest, and I never found a loan servicer who does that, don't even attempt to make a monthly allocation. If you simply split the total student loan interest between the two states, based on the number of payments made while residing in each state, that should provide a satisfactory deduction amount for each state.

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Student loan interest with multiple state tax return.