Can I take the tax credit for my school loans that got paid by an offset from my last years return

Forum|Forum|6 years ago
July 3, 2020
2 replies
6 views

Last year 7000$ of my return was offset to repay school loans . Can I claim any of that as interest payed on this years tax return

TurboTax Deluxe Online

BillM223

Level 15

In a word, no.

Sorry, but principal payments for such loans are not deductible.

And you can't deduct the interest on a student loan unless you receive a 1098-E form in the mail. Note that this is independent of how the loan is repaid.

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"

Carl

Level 11

Once you defaulted on the loan, it instantly lost it's "qualified" student loan status. Therefore, if you didn't get a 1098-E, the loan is no longer a qualified loan and nothing concerning the loan is deductible on any tax return.