Is Parent Plus loan interest deductible?

[Perplexed]

Can the interest on a parent plus loan, borrowed when a student was a dependent, be deducted when the student is no longer a dependent? 

[ericdanielsen16]

as a parent I can deduct the student loan on my child that I have been paying when the loan is in my name?

[ShanekaP]

Yes you can claim the interest.

This deduction lets you claim up to $2,500 of interest you paid on qualifying student loans. To get this deduction:

- You need your Form 1098-E.
- The student loan has to be in your name.

If you are a parent and the loan is in your child's name, then you can't deduct the interest on your tax return even if your child is your dependent on your tax return.

Follow the steps below to add this to your return:

1. Select Federal Taxes (Personal in the Home & Business edition).
   In Online TurboTax, click the bars at the upper left corner to show Federal Taxes on the selection list; enlarge the screen if needed to show the left side selection list.
2. Select Deductions & Credits and click I'll choose what I work on.
3. Scroll down the Your Deductions & Credits screen until you see the Education group.
4. Click Start or Update next to the Student Loan Interest Paid category.
5. Follow the on-screen instructions

See link below for further information.

https://ttlc.intuit.com/bookmarks?bookmark%5Bpost_id%5D=1966009

[a-brouillard]

On the other hand, I am the former student who had Parent PLUS loans taken out for me. The loans were taken out in my parent's name, but I am the only one making payments on this account. Is there any way I can claim this deduction if the loan isn't in my own name?

[IsabellaG]

No, in order for you to claim the interest, you must be legally liable for the loan, which you are not in the case of a Parent Plus loan. You can't simply take over the Parent Plus loan, but you could refinance the amount due with a private student loan. There are many factors to consider before choosing this route, so research carefully.

[Anonymous]

I am in the same boat as you. Please let me know if you have any updates on this?

[HelenC1]

Yes,  the student loan interest, on a parent plus loan, is deductible since the loan was taken out when the student was your dependent.

For additional information, see the following TurboTax Article: What is a 1098-E: Student Loan Interest.

• Please refer to the second paragraph under the  "When to deduct student loan interest" heading.

[Anonymous]

Thank you for your response Helen, I am actually the student paying Parent Plus loan under my mom's name

I wanted to get the tax credit for making those payments. I was wondering if there is a way I can do that?

[HelenC1]

You can only claim the deduction if you're legally obligated to pay interest on the qualified student loan. Generally, this means you signed the loan documents and may be personally liable for the loan.

You must also meet all of the following requirements: 

• You paid interest on a qualified student loan in tax year 2019;
• 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.

For additional information, see IRS Topic No. 456 Student Loan Interest Deduction.

[nlara10]

what if i am filing as head of household, am paying for my mom's parent plus loan and she is my dependent (i am financially providing for rent, food, etc and am also making these loan payments but they only list her name on the 1098-E)? How can i go about getting the credit for the money i am paying?

[KarenJ2]

If your mom is a dependent on your tax return, you must also be legally obligated to pay the loan in order to deduct it. So, if the loan is in your mom's name, then you can't deduct the interest even if your mom is your dependent.

You would need to be a co-signer on the loan.

[isazuluvale93]

I am on the same situation. I've been paying off the student loans on my dad's name. How can I get a tax deduction for this? is it possible? @KarenJ2 

[KatrinaB48]

No, you cannot claim the student loan interest unless you are legally liable for paying the interest. You must meet all of the following qualifications to claim the student loan interest:

• You paid interest on a qualified student loan in tax year 2019.
• 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.

[mikeb2613]

Here's my situation:

I was the student. I graduated, have my own set of student loans in my name while my parents have parent plus loans under their name. I am no longer a dependent. For scenario's sake, let's say both my parents and I paid over 2,500 in qualified student loan interest in 2019.

Can both of us claim the 2,500 student loan interest deduction?

I have seen a lot of different answers on this topic on the internet; I have struggled to find an answer specifically to this exact scenario where the student is no longer a dependent but has separate loans of their own.

[MaryK4]

Yes, you can each claim up to $2500 in student loan interest.  The amount is per taxpayer - so they qualify because it was a PLUS loan and you were a dependent when the loan was taken out.

@mikeb2613