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jjklh
Returning Member

Who claims student loan interest?

My son earned $6700 last year. He has to file taxes.  Parents paid the $5800 tuition cost that was above the scholarship amount. Parents paid over 1/2 support - claiming on taxes.  Parents have to report the 1098-T info.  However, son is paying the student loan.  No deduction for that - either by him or parents?
1 Best answer

Accepted Solutions
AnthonyC
Level 7

Who claims student loan interest?

Correct.  Neither party would be able to deduct any interest.  The rules for deducting student loan interest are below.  The student (son) would not be eligible because he is being claiming as a dependent on another return.  And the parents would not be eligible because they did not actually pay interest on a qualified student loan during the year.

You can claim the deduction if all of the following apply:

  • You paid interest on a qualified student loan in tax year 2016;
  • You're legally obligated to pay interest on a qualified student loan;
  • Your filing status isn't married filing separately;
  • Your MAGI is less than a specified amount which is set annually; and
  • You or your spouse, if filing jointly, can't be claimed as dependents on someone else's return.

https://www.irs.gov/taxtopics/tc456.html

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1 Reply
AnthonyC
Level 7

Who claims student loan interest?

Correct.  Neither party would be able to deduct any interest.  The rules for deducting student loan interest are below.  The student (son) would not be eligible because he is being claiming as a dependent on another return.  And the parents would not be eligible because they did not actually pay interest on a qualified student loan during the year.

You can claim the deduction if all of the following apply:

  • You paid interest on a qualified student loan in tax year 2016;
  • You're legally obligated to pay interest on a qualified student loan;
  • Your filing status isn't married filing separately;
  • Your MAGI is less than a specified amount which is set annually; and
  • You or your spouse, if filing jointly, can't be claimed as dependents on someone else's return.

https://www.irs.gov/taxtopics/tc456.html

View solution in original post

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