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Returning Member
posted Jun 5, 2019 11:50:42 PM

Parent plus loan is in my father's name, but I (student) am paying. I am not a dependent nor was I a dependent at the time the loan was taken out.Who get's the deduction?

I have a 1098-E form in my father's name for interest paid on a parent plus loan. I (the student) was not a dependent when the loan was taken out, and I am not a dependent now either. I am making the payments myself but am not sure how to go about claiming interest if the loan is in my father's name. Can I? If not, can my father get the deduction even though he is not actually paying and I am not (and was not) a dependent of his?

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1 Best answer
Level 15
Jun 5, 2019 11:50:44 PM

No one.

Only the borrower could claim the interest deduction, and if you weren't a dependent at the time the loan was made, then the borrower can't take the interest deduction either.

Are you sure you weren't a dependent?

3 Replies
Level 15
Jun 5, 2019 11:50:44 PM

No one.

Only the borrower could claim the interest deduction, and if you weren't a dependent at the time the loan was made, then the borrower can't take the interest deduction either.

Are you sure you weren't a dependent?

Returning Member
Jun 5, 2019 11:50:44 PM

Yes, I have not been dependent since age 18. My parents no longer live in the US and I am completely responsible for all of my expenses. So you are saying that no one will ever be able to claim an interest deduction on this parent plus loan, even in future years, because I was not a dependent at the time the loan was taken out?

Level 15
Jun 5, 2019 11:50:46 PM

Correct.  It's simply not a "qualified" loan for the deduction.  See page 32 here <a rel="nofollow" target="_blank" href="https://www.irs.gov/pub/irs-pdf/p970.pdf">https://www.irs.gov/pub/irs-pdf/p970.pdf</a>