One of the most common misconceptions about the student loan interest deduction is that a parent can claim it for helping make payments on their child’s loan. That is not the case. A parent can take the deduction only if they are personally liable for the loan.
Can you claim someone else’s student loan interest?
You’re legally obligated to pay interest on a qualified student loan; Your filing status isn’t married filing separately; Your MAGI is less than a specified amount which is set annually; and. Neither you nor your spouse, if filing jointly, can be claimed as dependents on someone else’s return.
Who can claim the student loan interest deduction?
You can take a tax deduction for the interest paid on student loans that you took out for yourself, your spouse, or your dependent. This benefit applies to all loans (not just federal student loans) used to pay for higher education expenses. The maximum deduction is $2,500 a year.
Can I deduct my daughter’s student loan interest?
Yes, unfortunately, if the child is not a dependent on your tax return, then you cannot claim the student loan interest that you paid. If the child is a dependent on your tax return, you must also be legally obligated to pay the loan in order to deduct it.
Can I deduct student loan interest if the loan is not in my name?
Cannot claim student loan interest because loan is not in my name. You can deduct student loan interest if: … you are a co-signer) on a qualified student loan. Your are not filing Married Filing Separate.
What is the Magi for student loan interest deduction?
For tax year 2019 (the taxes you file in 2020), the MAGI threshold was increased to $70,000 for single filers. So, if your MAGI was $70,000 or less in 2019 and your tax filing status is single, you could potentially deduct the full amount of qualified student loan interest you paid, up to a maximum of $2,500.
Do I have to report student loan interest on my taxes?
No, there is no requirement to report the student loan interest you paid during a tax year. The interest is usually subtracted from your total income before computing your Adjusted Gross Income (AGI). …
Can you deduct student loan interest 2020?
For 2020 taxes, which are to be filed in 2021, the maximum student loan interest deduction is $2,500 for a single filer, head of household, or qualifying widow or widower with a modified adjusted gross income of less than $70,000.
Can you claim student loan interest under $600?
Paying interest on a student loan for yourself, your spouse or a dependent may make you eligible for the student loan interest deduction. … 31 if you’ve paid at least $600 in interest on a qualifying student loan. If you’re paying off multiple loans with more than one servicer, you may receive several 1098-E forms.
Can grandparents deduct student loan interest?
Alternatively, grandparents can offer to pay off a grandchild’s student loans after they graduate from college. … In addition, the grandchild may be able to deduct up to $2,500 of student loan interest on the grandchild’s income tax return each year.