Parents co-signed for their child’s student loan & he/she couldn’t make the payments, so the parents made the payments last year. Can the parents deduct the student loan interest on their tax returns since they paid it?
No, because it’s not the parents debt. The IRS treats money that a parent pays on their child’s student loan as if the parent gave money to the child and then the child paid it. Your child will be able to deduct up to $2,500 of student loan interest on their tax return even though the parent had paid it. If you need help with your particular tax situation or any additional questions, please contact Sandy Flom either by telephone or by our convenient online form and Sandy may contact you.