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Should i take out Parent PLUS loan?

Can I take the deduction for the parent loan?

  • I took the loan out in my dads name for school. He was cool with it and had no problems. I am paying for it from my checking account but it is only under his name and he didnt claim the interest on his income tax. Am I allowed to claim it because I am paying for it even though it is not on my name or would I be setting myself up for investigation?

  • Answer:

    The IRS says it's fine for you to claim the interest on your student loan payments, even if it's actually a parent who is making the loan payment for you -- but they are completely silent about what happens in the other case, when the student is actually making the payments on behalf of the parent. Here's the relevant info from the IRS. You might want to read it over more carefully than I did and see if I missed something: http://www.irs.gov/publications/p970/ch04.html#en_US_publink100020903 (Oh, and to the poster who said only mortgage interest is deductible on your taxes -- you might want to take a look at the above as well.)

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Other answers

You are not legally obligated for the loan payments so you cannot take the adjustment for student loan interest. Sorry.

Bostonian In MO

You can't claim it since the only interest that is claimable is interest paid on a mortgage. You don;'t get any credit for paying back a loan. However, the amount you paid for school itself may be deductible.

Steve D

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