(Closed) Tax Question–Student loans

posted 6 years ago in Legal
Post # 3
Member
945 posts
Busy bee
  • Wedding: July 2013

@Jess1483:  replying to keep tabs, I am in the same situation! 😛 

Yay for student loans, eh? haha

Post # 5
Member
497 posts
Helper bee
  • Wedding: October 2013

your parents pay the loans, your parents get the deduction

Post # 6
Member
1562 posts
Bumble bee
  • Wedding: November 2011

Who’s name does the 1098INT come in?  The IRS will track based on SSN.  

You can claim the deduction if all of the following apply:

  • You paid interest on a qualified student loan in tax year 2012
  • You are legally obligated to pay interest on a qualified student loan
  • Your filing status is not married filing separately
  • Your modified adjusted gross income is less than a specified amount which is set annually, and
  • You and your spouse, if filing jointly, cannot be claimed as dependents on someone else’s return

Your parents are not legally obligated to pay the interest.  Therefore, per IRS topic 456, they cannot take the deduction.

Post # 8
Member
497 posts
Helper bee
  • Wedding: October 2013

@nyscpa2be:  Oh good point, I didnt think about the fact the loans could be in Jess’s name.

Post # 10
Member
346 posts
Helper bee
  • Wedding: May 2014

My parents are paying 30k of my student loans off for me.  The loans were all in my name but they cosigned for them.  Since they are in my name with my SSN, and i’m considered an independant I get all of the tax deductions, they get nothing for it. 

The topic ‘Tax Question–Student loans’ is closed to new replies.

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