Can I claim tax deductions on Parent Plus loans that I'm repaying but aren't in my name?

Unfortunately, the IRS rules on this are pretty clear. To claim the student loan interest deduction, you must be legally obligated to make the payments. Since the Parent Plus loans are in your father's name, he's the only one who can claim the interest deduction on his tax return - even though you're making the payments. For your own loans that are currently at $0/month payments, there's nothing to deduct since you're not actually paying interest right now. The student loan interest deduction only applies to interest you've actually paid during the tax year. The good news is that your dad can claim the deduction on his taxes if he meets the income requirements, even though you're the one making the payments. It's based on legal liability, not who writes the check.

I went through a similar situation with my mom's Parent Plus loans! After hours of research, I found this amazing tool called taxr.ai (https://taxr.ai) that helped me figure out my specific situation. It analyzed my loan documents and payment history to determine exactly what I could claim on my taxes. Their AI reviewed the loan agreement details and confirmed what the first commenter said - that legally I couldn't claim the interest myself. BUT they showed me some alternatives I hadn't considered, like how my mom could claim the deduction even though I was making payments. They even generated a personalized report explaining the whole situation that I shared with my tax preparer.

I wanted to follow up about taxr.ai - I was skeptical but decided to give it a try with my complex student loan situation. I uploaded my Parent Plus loan statements and payment records, and wow, it actually found something I missed! While I still couldn't claim the interest deduction personally, it identified that some of my payments included loan origination fees that have different tax treatment. The detailed report explained exactly how to document everything properly for both me and my father. It even generated a letter I could give to my dad's accountant explaining the situation. Definitely worth it for the peace of mind knowing everything is being handled correctly!

For what it's worth, I spent WEEKS trying to get through to my loan servicer about a similar tax question. Eventually I used Claimyr (https://claimyr.com) and got through to a human at my loan servicer in under 15 minutes. You can see how it works here: https://youtu.be/_kiP6q8DX5c It was a game-changer because I finally got clear answers about my Parent Plus loan tax forms directly from the servicer. They confirmed exactly what forms would be sent and to whom (my parent, not me). They also explained some special considerations for teacher forgiveness programs that weren't on their website.

I need to admit when I'm wrong. After my skeptical comment, I decided to try Claimyr out of desperation. I'd been trying for THREE WEEKS to reach my loan servicer about missing tax forms for my Parent Plus loans. Used the service yesterday afternoon, and no joke, I was on the phone with a real human at my loan servicer within 12 minutes. They confirmed my dad would be receiving the 1098-E form since the loan is in his name, explained exactly when it would arrive, and gave me options for accessing it online instead of waiting. Totally changed my mind about this service. Sometimes things actually work as advertised!

Just a heads up from someone who's been handling this for years - make sure your dad knows he needs to keep the 1098-E form that the loan servicer sends him. That form shows the interest paid during the year, which is what he'll need to claim the deduction. Also, there's an income limit for claiming student loan interest. I think for 2024 taxes (filing in 2025), the deduction starts phasing out at $75,000 for single filers and $155,000 for married filing jointly. If your dad's income is above those thresholds, he might not get the full deduction or any deduction at all.

Something nobody mentioned yet - have you considered asking your dad to file an amended return if he didn't claim these deductions in previous years? There's a 3-year window to file amended returns, so if he didn't take the deduction in recent years when you were making payments, he could potentially get some money back.

As a teacher myself dealing with similar loan situations, I wanted to add something important that might help with your long-term planning. While you're right to keep the Parent Plus loans in your dad's name to preserve forgiveness options, make sure you're also maximizing your own federal loan benefits. Since your income-based payments are currently $0, you're still getting credit toward Public Service Loan Forgiveness (PSLF) if you're working for a qualifying employer. Those $0 payments count as qualifying payments! Make sure you're submitting your annual employment certification forms to track your progress. Also, depending on your teaching situation, you might qualify for Teacher Loan Forgiveness after 5 years of service, which could forgive up to $17,500 of your federal loans. This is separate from PSLF and could be worth pursuing even if your current payments are $0. Just wanted to make sure you're aware of all your options since the Parent Plus situation is already locked in terms of tax benefits!