I was wondering if interest on a student loan is deductible on my children, still paying those student loans even after they grow up and become independent and I can no longer claim them as a dependent. Goggle led me to this topic...
The answer is yes, deducting the interest is appropriate as long as the student was a dependent when the loan was taken out. The answer at the top is incorrect, current dependent status is immaterial.
Per IRS Topic Number 456:
You can claim the deduction if all of the following apply:
- You paid interest on a qualified student loan in tax year 2019;
- 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.
A qualified student loan is a loan you took out solely to pay qualified higher education expenses that were:
- For you, your spouse, or a person who was your dependent when you took out the loan;
- For education provided during an academic period for an eligible student; and
- Paid or incurred within a reasonable period of time before or after you took out the loan
