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May 17, 2021
Question

Student loan compromise is tax deductible?

  • May 17, 2021
  • 1 reply
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I have paid off my student loans in a one time payment compromise. Is that tax deductible?

1 reply

DoninGA
Employee
May 17, 2021

Paying off the student loan is not deductible on a tax return.

Only the student loan interest paid on the loan in 2020 can be entered on a 2020 federal tax return as an adjustment to income.  Student loan interest paid is reported to you on a Form 1098-E

Hal_Al
Employee
May 17, 2021

The other question you may have is: is the amount of the loan forgiven (eliminated) taxable to you.

It is if they issue a form 1099-C  to you.