- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Student Loan
I took out a student loan for my granddaughter in order to get a lower interest rate. I make the monthly payments and she reimburses me. Can I claim the student loan interest on the Form 1098-E? I would pass on the tax savings to her.
Topics:
February 8, 2021
6:03 PM
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Education
You could only claim the student loan interest deduction if the student were your dependent when the loan was made.
February 8, 2021
6:20 PM
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Education
You can claim the deduction if all of the following apply:
- You paid interest on a qualified student loan in tax year 2020.
- You can take the deduction as a student, or as a parent making payments on your dependent student’s loan. However, you or your spouse, if filing jointly, can't be claimed as dependents on someone else's return.
- 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.
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.
- Paid or incurred within a reasonable period of time before or after you took out the loan.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
**Mark the post that answers your question by clicking on "Mark as Best Answer"
February 8, 2021
6:25 PM
460 Views