Student loan interest

[rsturgill21]

Can I take off student loan interest that is paid to a Canadian student loan?

[MargaretL · Accepted solution]

Yes - you can deduct student loan interest from a foreign country, as long as the loan meets the requirements of being a student loan (a qualified student loan is a loan you took out solely to pay qualified higher education expenses) and you have legal obligation to make the loan payments. 

The year-end statement is sufficient enough to claim the interest. When going through Turbo Tax interview, simply enter the name of your Lender and amount in box 1, as if 1098-E form is received.

To enter student loan interest paid:

1. Federal Taxes
2. Deductions & Credits
3. Education
4. Select Student Loan Interest Paid (Form 1098-E) - follow the prompts

Note: amounts must be entered in U.S. dollars on the U.S. tax return. You may use "government resources" or "external resources" in the below link for conversion:

https://www.irs.gov/Individuals/International-Taxpayers/Foreign-Currency-and-Currency-Exchange-Rates OR https://www.irs.gov/Individuals/International-Taxpayers/Yearly-Average-Currency-Exchange-Rates