can u claim 2005 interest on 2006 return?

Question

I forgot to claim Student Loan interest on my 2005 return, but I still have the 1098-E I wanted to know if I could now claim it on my 2006 return?

Answer 1

First, let me just tell you that since your student loan interest paid is an adjustment to your income, it makes no difference whether you itemized in 2005 or not. The student loan interest deduction is given on line 33 of Federal Form 1040. If it were an itemized deduction it would be shown on Schedule A. The only interest you will see itemized is Mortgage Interest and Investment Interest.

But to answer your question - no, you can not claim your 2005 student loan interest paid on your 2006 return. Since your tax liability is computed for the current year on a cash basis, and not an accrual basis, you can only deduct things on your 2006 return that were actually paid in 2006. (With the exception of carryforwards and things of that nature, which don't apply in this situation anyway.)

You can file an amended return for 2005. The Federal Form you will need to file is called a 1040X (Amended US Individual Income Tax Return). When filling out this form you will need to have a copy of your 2005 Form 1040 on hand because you will be asked to enter in certain amounts from that return on the 1040X. (You can find a copy of the 1040X on the IRS website.) You will be asked to enter in the amounts as originally reported in column A of lines 1 through 15. You will then need report the change in column B of lines 1 through 15. In your case, the student loan interest deduction will decrease your 2005 adjusted gross income. Therefore you will want to enter the amount of student loan interest shown on your 20051098-E on line 1 of column B. Then since your student loan interest is decreasing your AGI (adjusted gross income), subtract the amount in column B of line 1 from the amount in column A of line 1, and write the result in column C of line 1.
Then fill out the rest of the information on lines 16 through 24. It will ask you how much you either owed the IRS or how much of a refund you received when you originally filed and will determine your new tax liability or refund. Follow the directions on the form, that section is pretty straight forward.

Don't forget that you will need to also explain your changes in Part II of Form 1040X. It will ask you to explain your changes line by line. Since you will be changing line 1 of Form 1040X your explanation should be something similar to this: "Line 1 - AGI was overstated on original return. When 2005 Form 1040 was originally prepared, Student Loan interest in the amount of $XXX, as shown on attached Form 1098-E, was erroneously left off the return." (You will need to send along a copy of your 2005 Form 1098-E showing the amount you are now reporting.)

You may also need to file an amended return with your resident state as well. When you file an amended Federal Form 1040X the State in which you reside will be notified, and if you do not file an amended return, the state may contact you as to why you filed an amended federal return. Tax laws from state to state differ, so not knowing what state you are in, I can't help you here. For this matter I would suggest that you speak to a local CPA or tax professional who can help you out further. Likewise, if you attempt to fill out the 1040X on your own and get lost and a little confused, it can't hurt to consult with a professional.

Good luck!

Answer 2

You cannot claim interest paid in 2005 on your 2006 tax return.

Did you have a tax liability in 2005? If so, then the student loan interest deduction will reduce your 2005 tax liability. File an amendment for 2005 and get a refund of the tax overpayment.

If you didn't owe any taxes for 2005, then there is no point in filing an amendment.

Answer 3

You could file an amended return on a 1040X for the year 2005 and claim that interest . But if you did not itemize your deductions for 2005 there would be no tax benefit.
You cannot shift this expense to 2006.

Answer 4

No. You'll have to file an amended return for 2005 if you want to take advantage of that. File Form 1040X to do that.

Answer 5

No, you must file an amended 2005 return (1040X) if you want the deduction.

Answer 6

No, but you can amend your 2005 return and claim it there.