I took loan for my spring, 2007 semester for grad school. In summer, 2007 I paid my whole loan. Is it possible that I can show this amount as tax deductable next year?
2007-09-19 16:27:33 · 2 answers · asked by Anwar H 1 in Business & Finance ➔ Taxes ➔ United States
Repayment of a loan is not a tax deduction.
Your tuition and fees should be eligible for an education credit.
If you paid any interest on the student loan, you could probably take that as an adjustment.
2007-09-19 16:36:20 · answer #1 · answered by Judy 7 · 2⤊ 0⤋
When you took out the loan and used the proceeds of the loan to pay for grad school, the IRS considers you to have paid your school expenses.
Whether you repaid the loan or not, you can still get the Lifetime Learning Credit, Tuition and Fees Deduction, or unreimbursed employee expenses (for work-related education) as long as you meet all the other qualifications.
2007-09-19 16:45:03 · answer #2 · answered by ninasgramma 7 · 3⤊ 0⤋