I currently have a student loan in my name I am paying back and my parents have a student loan in their name for me that they are paying back but I am paying them every month for it. I read this article a while ago and have a question regarding when I’m doing my taxes this year.
Generally, you can only deduct mortgage or student-loan interest if you are legally required to repay the debt. But if parents pay back a child’s student loans, the IRS treats the money as if it was given to the child, who then paid the debt. So, a child who’s not claimed as a dependent can qualify to deduct up to $ 2,500 of student-loan interest paid by Mom and Dad. And he or she doesn’t have to itemize to use this money-saver. Mom and Dad can’t claim the interest deduction even though they actually foot the bill since they are not liable for the debt.
Does this mean when I do my taxes this year (I have been doing the free hrblock online one), when it says student loan interest paid, I can put the interest amount I have paid for my loan PLUS the loan interest amount my parents have paid on loan in their name?
Also, if that is the case, I have missed this the past 4 years I have been doing my taxes so can I get money from all those previous years I missed adding in the loan interest amount my parents have been paying? Would I need to go to a professional or can I still do it online via HRBlock or Turbotax?