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Taxmap/pubs/p970-021.htm#TXMP2f7d449a Who Can Claim a   Dependent's Expenses

Who Can Claim a Dependent's Expenses

You can deduct interest paid on a student loan for your dependent only if you:

1. Are legally obligated to make the interest payments,
2. Actually made the payments during the tax year, and
3. Claim an exemption for your dependent on your tax return.

You are not considered to have made student loan interest payments actually made by your dependent, regardless of whether your dependent is legally liable for the loan.

Taxmap/pubs/p970-021.htm#TXMP00cb366e
Example.

During 2004, Jo paid $1,100 interest on her qualified student loan. Only she is legally obligated to make the payments. Jo's parents claimed an exemption for her on their 2004 tax return. In this case, neither Jo nor her parents may deduct the student loan interest Jo paid in 2004.

Previous Page:  Publication 970 - Tax Benefits for Education - Can You Claim the Deduction Next Page:  Publication 970 - Tax Benefits for Education - Figuring the Deduction Use     to find additional instances of index items.