Did you know parents can gift student loan interest to their children for a tax benefit? In this episode, Dr. Friday explains how up to $2,500 in interest paid by parents can still be deducted by the student on their tax return. This tax-saving tip highlights a useful loophole for families handling student loans. Tune in to learn more about this unique strategy.
Transcript:
G’day I’m Dr. Friday, president of Dr. Friday’s Tax and Financial Firm. To get more info, go to www.drfriday.com. This is a one-minute moment.
Did you know that student loan interest can be gifted? That’s right, so sometimes parents are pretty cool and they take over or the loans are actually in their names when their kids go to school. But if the parents wanted to—maybe their income isn’t too high, it doesn’t qualify, or maybe they just want the child to be responsible for the interest—you can actually gift that interest to the child, and they can take up to $2,500 of interest off of their tax return, even though you as the parent may have paid it. It’s kind of a cool little loophole that’s in there, and there’s many more. So if you need help understanding tax law, you need to call us at 615-367-0819.
You can catch the Dr. Friday call-in show live every Saturday afternoon from 2 to 3 p.m. right here on 99.7 WTN.