Dilemma. My last year in college was Aug 2007 - May 2008. I paid for both semesters with student loans, with the second semester (Jan - May 2008) payment posting in December 2007. Can I deduct the tuition for the second semester (entirely in 2008) on my 2008 taxes? Thanks.

Actually, the IRS would not allow this deduction on the 2008 Tax Year. In fact, the School would send you a 1098-T for the tax year 2007. Thus, it would not be appropriate to claim this amount on the 2008 tax return.

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