Tax Tips – Is It Tax Deductible? – Student Loan Interest

Tax TipsLearn tax tips so you will be informed and can save money on taxes!

Question – If a parent pays the child’s student loan interest payment does the parent get a Tax Deduction?

Example – Your father made a payment on your college loan. Who gets to claim the student-loan interest tax deduction?

Answer – Dad or Child?

 

The answer is CHILD.

No need to fight over this. The IRS says that if Mom or Dad makes a payment on your student loan, it’s a gift that gives twice. You, the child, can qualify to deduct up to $2,500 of student loan interest paid, as long as your parents don’t claim you as a dependent. This is another deduction you can claim even if you use the standard deduction instead of itemizing.Student Loan Money

 

 

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