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wbetsya
New Member

I lived outside the US for 2017 and qualify for foreign earned income exclusion, but does this mean I will not receive a deduction for interest paid on student loans?

 
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DS30
New Member

I lived outside the US for 2017 and qualify for foreign earned income exclusion, but does this mean I will not receive a deduction for interest paid on student loans?

It depends -

You can still enter your 1098-E for the 2017 tax year. However, if you only have foreign sourced earned income and all that foreign soured earned income is excluded under the Foreign Earned Income Exclusion, then you will effectively not get any benefit from your student loan interest deduction since you have no taxable income to apply this deduction to. (You would not get any type of refundable credit for including your student loan interest.)

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1 Reply
DS30
New Member

I lived outside the US for 2017 and qualify for foreign earned income exclusion, but does this mean I will not receive a deduction for interest paid on student loans?

It depends -

You can still enter your 1098-E for the 2017 tax year. However, if you only have foreign sourced earned income and all that foreign soured earned income is excluded under the Foreign Earned Income Exclusion, then you will effectively not get any benefit from your student loan interest deduction since you have no taxable income to apply this deduction to. (You would not get any type of refundable credit for including your student loan interest.)

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