Author Topic: how to claim in tax  (Read 1649 times)

luigi49

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how to claim in tax
« on: March 27, 2014, 10:52:33 AM »
Last year my son and I have a Parent plus student loans.  Do I claim that now or wait till we start paying the loan?  Don't know how this works.   Does he claim the student loan or do I?  I will eventually payoff this loan depending on his performance in school.  Thanks

randymarsh

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Re: how to claim in tax
« Reply #1 on: March 27, 2014, 10:59:01 AM »
You can deduct the interest on the PLUS loan assuming interest was paid in 2013. Your loan servicer should have the tax form on their website for you to view.

You can likely claim a tax credit, I think it's the American Opportunity something or other. I believe you have to pick either the interest deduction or the credit, not both.

I will eventually payoff this loan depending on his performance in school.

You probably know this, but you'll be paying it off no matter what if you son doesn't or can't pay. The loan is only in your name and he has no legal responsibility for it.
« Last Edit: March 27, 2014, 11:00:47 AM by thefinancialstudent »

luigi49

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Re: how to claim in tax
« Reply #2 on: March 27, 2014, 11:27:06 AM »
You can deduct the interest on the PLUS loan assuming interest was paid in 2013. Your loan servicer should have the tax form on their website for you to view.

You can likely claim a tax credit, I think it's the American Opportunity something or other. I believe you have to pick either the interest deduction or the credit, not both.

I will eventually payoff this loan depending on his performance in school.

You probably know this, but you'll be paying it off no matter what if you son doesn't or can't pay. The loan is only in your name and he has no legal responsibility for it.

Probably a dumb question, but what if there is no interest paid on 2013.  I am also aware I am on the hook for this loan regardless.

MDM

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Re: how to claim in tax
« Reply #3 on: March 27, 2014, 11:33:51 AM »
It's a fine question.  But the IRS won't give you a deduction on interest that has not been paid.

randymarsh

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Re: how to claim in tax
« Reply #4 on: March 27, 2014, 11:43:07 AM »
You can't deduct anything in that case. But you'll likely qualify for this tax credit: http://www.irs.gov/publications/p970/ch02.html