Neither you nor your parents are eligible for the deduction in this unfortunate "catch-22" situation. Even though you are making the payments, you did not take out the loan and do not have primary responsibility for repaying it. Your parents are not eligible for the deduction because they did not pay the student loan interest. Always remember that it is the taxpayer's responsibility to figure and claim the Student Loan Interest Deduction correctly.
Articles in this section
- My spouse is retired and had no earned income. I, however, did have earned income and I participate in my company's retirement plan. If we file married filing jointly, is she eligible to make a deductible traditional IRA contribution based on my income?
- My parents took out a student loan, but I'm now an independent taxpayer making the payments. Who can claim the interest deduction, me or my parents?
- I make support payments to my ex-spouse for her and our two minor children in her custody. Are these payments deductible as alimony?