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Education & Work-Related Expenses

Question: Last year, my parents and I both took out student loans for me. We both received Form 1098-E for our separate loans. I wasn't their dependent last year. Can we both claim student loan interest on our tax returns?

Answer:

You may be able to claim a student loan interest deduction for the payments you made on the student loan you took out on your behalf, provided you meet the other requirements.

In order for a taxpayer to claim a deduction for student loan interest, the loan must be incurred for a taxpayer, their spouse, or a person who was their dependent at the time they took out the loan. Your parents don't qualify to claim the student loan interest deduction for the interest they paid on the loan because you weren't your parents' dependent at the time the loan was taken.

However, there are exceptions where you may still be considered their dependent at the time the loan was taken out. If you were considered your parents' dependent when they took out the student loan, the interest they paid on the loan may qualify them for the student loan interest deduction. See Exceptions under Qualified Student Loan in Publication 970, Tax Benefits for Education.

Additional Information:


Category: Itemized Deductions, Standard Deduction
Subcategory: Education & Work-Related Expenses

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The OMB number for this study is 1545-1432.
If you have any comments regarding this study, please write to:
IRS, Tax Products Coordinating Committee
SE:W:CAR:MP:T:T:SP
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