Is Parent Plus loan interest deductible?

Forum|Forum|7 years ago
May 31, 2019
2 replies
59 views

Can the interest on a parent plus loan, borrowed when a student was a dependent, be deducted when the student is no longer a dependent?

TurboTax Deluxe Online

ericdanielsen16

Level 2

as a parent I can deduct the student loan on my child that I have been paying when the loan is in my name?

Anonymous

Yes you can claim the interest.

This deduction lets you claim up to $2,500 of interest you paid on qualifying student loans. To get this deduction:

- You need your Form 1098-E.
- The student loan has to be in your name.

If you are a parent and the loan is in your child's name, then you can't deduct the interest on your tax return even if your child is your dependent on your tax return.

Follow the steps below to add this to your return:

Select Federal Taxes (Personal in the Home & Business edition).
In Online TurboTax, click the bars at the upper left corner to show Federal Taxes on the selection list; enlarge the screen if needed to show the left side selection list.
Select Deductions & Credits and click I'll choose what I work on.
Scroll down the Your Deductions & Credits screen until you see the Education group.
Click Start or Update next to the Student Loan Interest Paid category.
Follow the on-screen instructions

See link below for further information.

https://ttlc.intuit.com/bookmarks?bookmark%5Bpost_id%5D=1966009

a-brouillard

Level 2

On the other hand, I am the former student who had Parent PLUS loans taken out for me. The loans were taken out in my parent's name, but I am the only one making payments on this account. Is there any way I can claim this deduction if the loan isn't in my own name?

IsabellaG

Level 13

No, in order for you to claim the interest, you must be legally liable for the loan, which you are not in the case of a Parent Plus loan. You can't simply take over the Parent Plus loan, but you could refinance the amount due with a private student loan. There are many factors to consider before choosing this route, so research carefully.

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