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saraski79
Level 1

If I am making payments to a credit union for a loan, do I claim the finance charges on my taxes?

 
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DS30
New Member

If I am making payments to a credit union for a loan, do I claim the finance charges on my taxes?

The IRS does not allow a taxpayer to claim an interest deduction if it is a personal loan (This includes a personal car loan.)

If however, the loan is a home equity loan, you may be able to claim this as an itemized deduction on Schedule A.

If this is student loan interest, you would be able to claim this on your tax return if you meet all the eligibility requirements. (Student loan interest would be reported to you on a Form 1098-E).

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4 Replies
DoninGA
Level 15

If I am making payments to a credit union for a loan, do I claim the finance charges on my taxes?

What type of loan?
saraski1979
New Member

If I am making payments to a credit union for a loan, do I claim the finance charges on my taxes?

It was a car loan.
DS30
New Member

If I am making payments to a credit union for a loan, do I claim the finance charges on my taxes?

Unless the car is used for business purposes (as in a self-employment business or for unreimbursed car use as an employee), you will not be able to claim a deduction for this car loan. Please see posted answer.
DS30
New Member

If I am making payments to a credit union for a loan, do I claim the finance charges on my taxes?

The IRS does not allow a taxpayer to claim an interest deduction if it is a personal loan (This includes a personal car loan.)

If however, the loan is a home equity loan, you may be able to claim this as an itemized deduction on Schedule A.

If this is student loan interest, you would be able to claim this on your tax return if you meet all the eligibility requirements. (Student loan interest would be reported to you on a Form 1098-E).

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