Can I take the tax credit for my school loans that got paid by an offset from my last years return

Forum|Forum|5 years ago
July 3, 2020
2 replies
0 views

Last year 7000$ of my return was offset to repay school loans . Can I claim any of that as interest payed on this years tax return

TurboTax Deluxe Online

BillM223

In a word, no.

Sorry, but principal payments for such loans are not deductible.

And you can't deduct the interest on a student loan unless you receive a 1098-E form in the mail. Note that this is independent of how the loan is repaid.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"

Carl11_2

Employee

Once you defaulted on the loan, it instantly lost it's "qualified" student loan status. Therefore, if you didn't get a 1098-E, the loan is no longer a qualified loan and nothing concerning the loan is deductible on any tax return.