My mother in law wnts to lend me 9000 dollars to pay off my student loans. how can i have her give me the money in a legal way so i dont have to pay taxes on it?

crazy4pink321 · ‎June 4, 2019

xmasbaby0 · ‎June 4, 2019

Gifts from individual are not taxable, so even if she gives you the money you would not owe any tax on it. "She wants to lend me...." If she makes it a personal loan to you, there is not any deduction for paying interest to her as you re-pay the loan.

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

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xmasbaby0 · ‎June 4, 2019

Gifts from individual are not taxable, so even if she gives you the money you would not owe any tax on it. "She wants to lend me...." If she makes it a personal loan to you, there is not any deduction for paying interest to her as you re-pay the loan.

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

SweetieJean · ‎June 4, 2019

However, you will be able to deduct the student loan interest that you pay with those funds.

xmasbaby0 · ‎June 4, 2019

MIL may need to understand that she will not be able to deduct anything for paying your student loan, however. Gifts to individuals are not deductible; and only the person legally obligated to pay the student loan can enter any interest paid on the student loan on their tax return.

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

SweetieJean · ‎June 4, 2019

Good point!

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My mother in law wnts to lend me 9000 dollars to pay off my student loans. how can i have her give me the money in a legal way so i dont have to pay taxes on it?