Who claims student loan interest?

Forum|Forum|7 years ago
June 6, 2019
1 reply
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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?

ItsDeductible Online

Best answer by AnthonyC

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

AnthonyCAnswer

Level 12

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