Can Parents Claim Student Loan Interest Deduction?

Do you have to report student loan interest on taxes?

You paid interest on a qualified student loan in the tax year, You are legally obligated to pay interest on a qualified student loan, Your filing status is not married filing separately, …

If your income falls above those limits, the student loan interest is not tax-deductible..

What is the maximum amount you can deduct for student loan interest?

There is no limit on the maximum amount that is allowed as deduction. You, however, need to obtain a certificate from your Bank. Such certificate should segregate the principal and the interest portion of the education loan paid by you during the financial year. The total interest paid will be allowed as a deduction.

Can I claim my daughter’s student loan interest?

Unlike the tuition tax credit, interest paid on qualified student loans may only be claimed by the student, regardless of who made repayments on the student’s behalf. … Even then, if a student consolidates his education loans with other types of loans, the student loan interest credit becomes unavailable.

Who can claim the student loan interest deduction?

As of the 2019 tax year, taxpayers who file as single are entitled to a full deduction if their modified adjusted gross income (MAGI) is $70,000 or less, and a partial deduction if their MAGI is over $70,000 but less than $85,000. A single filer with a MAGI over $85,000 can’t claim the deduction.

Is student loan interest deductible for 2019?

For your 2019 taxes, which you will file in 2020, the student loan interest deduction is worth up to $2,500 for a single filer, head of household, or qualifying widow(er) with MAGI of less than $70,000. … Joint filers can deduct up to the maximum if their MAGI is less than $140,000.

Can I deduct student loan interest if I am a cosigner?

Taxpayers can claim the student loan interest deduction only if they are legally obligated to pay the interest as a borrower or cosigner of the federal or private student loan. Voluntary payments by others count as though they were made by the borrower.

Is it worth it to claim student loan interest?

The Student Loan Interest Deduction May Not Be Worth The Paper It’s Printed On. … Although this is an above-the-line deduction in that it reduces your gross income directly to compute adjusted gross income (you don’t need to itemize), there are several restrictions that limit any actual tax benefits.

What is the phase out for student loan interest deduction?

Student Loan Interest Deduction Phase-OutsFiling StatusPhase-out BeginsPhase-out EndsMarried Filing Jointly$140,000$170,000Qualifying Widow(er)$70,000$85,000Head of Household$70,000$85,000Single$70,000$85,000

Can parents take student loan interest deduction?

If you are the parent or legal guardian of a college student, you can claim the deduction if: You are legally obligated to pay the interest on a qualified student loan. You paid interest. Your filing status is not married filing separately.

Should you claim student loan interest?

Student loan interest is deductible if your modified adjusted gross income, or MAGI, was less than $70,000 in the past tax year. … Student loan interest is not an itemized deduction — it’s taken above-the-line. That means you subtract the interest you paid to lower your taxable income.

What is the phaseout for student loan interest deduction?

For the 2019 tax year, the student loan interest deduction gradually phases out for taxpayers whose modified adjusted gross income (MAGI) is between: $70,000 and $85,000: If your filing status is single, head of household or qualifying widow. $140,000 and $170,000: For married couples filing jointly.

Can I claim a parent PLUS loan on my taxes?

Yes you can claim the interest. This deduction lets you claim up to $2,500 of interest you paid on qualifying student loans. … If you are a parent and the loan is in your child’s name, then you can’t deduct the interest on your tax return even if your child is your dependent on your tax return.

How do student loans affect taxes?

The student loan interest deduction is an “above the line” deduction, meaning it reduces your taxable income. If you are in the 22% tax bracket and you are able to take the full $2,500 tax deduction, it could save you $550 in taxes.