Form 1098-T

[taxmen2021]

Another question for form 1098-T. Where should I record Federal loan( as a payment) amount taken by my daughter for educational expenses ?

[MayaD]

You don't claim the loan itself,  but the interest you paid during the year. However, only the person whose name is on the student loan and who is legally obligated to pay the loan can deduct the student loan interest.

For more information please check Can I claim my student loan?

[taxmen2021]

Thank you Maya. I have talked to a tax prepare and he told, that I can include the loan amount as a payment on my return for daughter's educational expenses.

[MayaD]

Yes. Eligible expenses can be deducted whether they were paid out-of-pocket or through a student loan.

[taxmen2021]

Where should I enter the loan amount taken iin 2021 for an educational expenses? If the loan amount , for example was $2,500.00 and we paid only of $ 500.00 of that amount for educational expenses and for the rest for room and board, where should I enter $500.00?

[MayaD]

To enter the education expenses:

1. Open (continue) your return, if you don't already have it open.
2. Select Federal Taxes.
3. Go to Deductions and Credits.
4. Scroll down to Education and Select Start next to Expenses and Scholarships (1098-T)
5. On the Education Expenses screen, answer Yes to Did you go to college or vocational school?
6. Select the student whose name is on the 1098-T and answer the questions that follow (the type of degree, full-or half-time, etc.)
7. After you enter the name of the school, the next screen will ask if that school sent you a 1098-T. Answer Yes and proceed. You will get to the screen where you can enter the additional education expenses.

[taxmen2021]

Thank you Maya.

[MayaD]

You're welcome!