Internal Revenue Service United States Department of the Treasury
Level Basic Advanced Military International

Adjustments to Income Workout

Student Loan Interest

Case Study 4: Who Can Claim the Deduction?

Ethan obtained a qualified student loan to attend college. After graduating from college, the first monthly payment on his loan was due in December.

As a gift, Ethan's mother made this payment for him. No one is claiming Ethan as a dependent on his or her tax return.

Assuming all other qualifications are met, Ethan can deduct this payment of interest on his tax return.