topic Can someone else pay for student loan and take interest deduction? in Deductions & credits

Can someone else pay for student loan and take interest deduction?

Bigdawgbigbear — Mon, 24 Feb 2025 17:10:40 GMT

Hi,

I have a refinanced student loan that a parent is helping pay. I am not a dependent. Can my parent take the tax deduction on interest paid by them? Let me know if there are additional questions need answered. Thank you in advance!

Re: Can someone else pay for student loan and take interest deduction?

xmasbaby0 — Mon, 24 Feb 2025 17:13:13 GMT

Did your parent co-sign? Are they legally obligated to pay the loan---or just helping you out?

Re: Can someone else pay for student loan and take interest deduction?

Opus 17 — Mon, 24 Feb 2025 17:31:21 GMT

If the loan is in your name but your parents pay the interest, you deduct the interest as if your parents paid you and you paid the interest. See publication 970.

https://www.irs.gov/publications/p970#idm140647358456160