READ: Tax-savvy ways to save for your kid’s college expenses<\/a><\/p>\nIf you are claimed as a dependent on the tax return or your parents or anyone else, you cannot deduct student loan interest on your return.<\/p>\n
The amount you can deduct is phased out as your \u201cmodified\u201d Adjusted Gross Income goes from $60,000 to $75,000 if you are single or from $125,000 to $155,000 on a joint return.You cannot claim the deduction if you are married filing separately.<\/p>\n
Student loan interest paid is reported on Form 1098-E.<\/p>\n
I recently had a situation where the Form 1098-E was issued in the name and Social Security number of the student. But the parents were also named on the loan and had a legal obligation to repay it, and they made all the loan payments for the year. The student could not deduct the interest on her return. But I did claim a deduction for the interest paid, subject to the $2,500 limitation (which was further reduced by the MAGI phaseout), on the parents\u2019 Form 1040.<\/p>\n
Interest on a loan from a related party or from a qualified employer plan, such as a 401(k), are not deductible.<\/p>\n
<\/p>\n","protected":false},"excerpt":{"rendered":"
You can claim up to $2,500 in interest paid on qualified student loans used to pay for college or vocational school. NEW YORK (MainStreet) \u2014 You can claim up to $2,500 in interest paid on qualified student loans used to pay for post-secondary education \u2014 college or vocational school \u2014 for yourself, your spouse […]<\/p>\n","protected":false},"author":1,"featured_media":7677,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[26,31,28,27],"tags":[],"class_list":["post-949","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-education","category-tax-deductions","category-taxes-and-education","category-taxes-college-students"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.irs.com\/en\/wp-json\/wp\/v2\/posts\/949","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.irs.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.irs.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.irs.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.irs.com\/en\/wp-json\/wp\/v2\/comments?post=949"}],"version-history":[{"count":2,"href":"https:\/\/www.irs.com\/en\/wp-json\/wp\/v2\/posts\/949\/revisions"}],"predecessor-version":[{"id":7678,"href":"https:\/\/www.irs.com\/en\/wp-json\/wp\/v2\/posts\/949\/revisions\/7678"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.irs.com\/en\/wp-json\/wp\/v2\/media\/7677"}],"wp:attachment":[{"href":"https:\/\/www.irs.com\/en\/wp-json\/wp\/v2\/media?parent=949"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.irs.com\/en\/wp-json\/wp\/v2\/categories?post=949"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.irs.com\/en\/wp-json\/wp\/v2\/tags?post=949"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}