Question

Student Loan Interest

Forum|Forum|6 years ago
January 23, 2020
1 reply
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Can the student loan interest my wife paid on my son's student loan interest be deducted on his tax 2019 tax return. Doesn't the tax reform act prevent us from claiming the expense as his income exceeds the threshold? Can he deduct the full amount of the payments that we have on the ledger which is more than the 1098 e which lists 0 interest.

DaveF1006

The limit of the amount of income you can make and still qualify for the student loan interest deduction, based on your or your dependent filing status for the 2019 tax year is: Single: $85,000. Married filing jointly: $170,000. You can claim the expense if your son is your dependent. If he is not, then you cannot claim the interest on your return.

Regardless who claims the expense, you can only claim the interest portion of your student loan payments. If the 1098E lists "0" interest paid, then those payments may have been applied strictly to the principal. You can report interest payments paid up to $2500 but i suggest requesting a corrected 1098E from the loan service. This is contingent on if your son can be claimed a dependent on your return. If he can claim his own dependency and if he exceeds the income threshold, then neither of you can claim the expense.

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