Question: Can I claim an education credit for higher education expenses paid by a government-subsidized loan?
Higher education expenses paid with the proceeds of a government-subsidized loan may qualify for the credit if you must repay the loan. The credit is claimed in the year in which the expenses are paid, not in the year in which the loan is repaid.
- Publication 970, Tax Benefits for Education
- Form 8863 (.pdf), Education Credits (American Opportunity and Lifetime Learning Credits)
Category: Child Care Credit, Other Credits
Subcategory: Education Credits