Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 02-14-2011, 06:35 PM
Junior Member
 
Join Date: Feb 2011
Posts: 1
College Loan Deductions

Have two children dependents in college. Both have taken subsidized loans and unsubsidized loans in there names to help pay for tuition. Can we as parents (claiming them as dependants) claim the amounts paid to the college for tuition paid by the loans?



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #2 (permalink)  
Old 02-15-2011, 03:11 AM
Moderator
 
Join Date: Oct 2010
Posts: 5,258
“Can we as parents (claiming them as dependants) claim the amounts paid to the college for tuition paid by the loans?”----> You can deduct up to $2,500 in interest on a qualified education loan(most federal and private education loans would be eligible for this type of deduction, including all Federal Stafford and PLUS. Private student loans do not automatically qualify). The deduction is taken as an adjustment to income, so you can take the deduction as an above-the-line exclusion from income on form 1040 line 33 even if you don't itemize deductions on Schedule A of your 1040. The interest must have been paid on a qualified education loan for your dependents when the money was borrowed.
Please visit the form 1040 website here( go to line #33); http://www.irs.gov/pub/irs-pdf/i1040.pdf



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply



Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
college student bugs12 Itemized Deductions 1 01-21-2010 10:34 AM
college scholarship savings hrbburn Miscellaneous 2 01-12-2010 09:13 PM
college student under age 24-claim as dependent? nymbeaches Income 0 10-23-2009 06:18 PM
What is the best loan to fund my college education? TaxGuru Education Planning 0 06-16-2009 10:27 AM
Sen Obama's Tax Policy regarding College Aid TaxGuru Democrats 0 07-16-2008 12:49 PM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning
 
 
 

» Recent Tax Q&A
No Threads to Display.