My parents took out a series of PLUS loans while I was in school, as it was the lowest interest rate. I give them a check for $375 every month to cover the payments, is there any way I can claim this on my taxes?
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My parents took out a series of PLUS loans while I was in school, as it was the lowest interest rate. I give them a check for $375 every month to cover the payments, is there any way I can claim this on my taxes?
not if they're in your parents' name.
This is what I figured (knew), was just looking for a loophole....Quote:
Originally Posted by jfost
The current plan is for me to do my taxes, figuring my refund based on the qualifying interest payments on the loans in my name. I will then run the calcs again, but include the amount if that I have paid on the loans in my parent's name. Any difference in the refund amount they will supposedly pay. Last year was the first year I had to pay on their loans per our agreement.
Shits a pain in the ass, its a struggle to get any info from them, but they expect me to cover the loans (as this was the deal when I went to college). I have asked for copies of the loan docs several times, but they won't give them to me, leaving me to wonder if my money is actually being applied to the loans. I would have gladly taken on the slightly higher interest rate had I known what a PLUS loan would entail at the time. Pretty sure I would qualify for some better consolidation options too if everything was in my name.
Work it out with your parents...wouldnt they be getting the deduction?
You realize you can't deduct the entire student loan payment from your taxes anyway, right? You get to deduct the interest... which will probably be significantly lower than any number you had in your head. However, since the loans are in your parents' name, they're deducting the interest. :)
Send a bill to the 'rents for back taxes owed.;)
Most payment/loan types, the first few years of payments are mostly interest.Quote:
Originally Posted by smmokan