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IRS.gov Website
Publication 970
taxmap/pubs/p970-020.htm#en_us_publink1000178272

Can You Claim the Deduction(p32)

rule
Generally, you can claim the deduction if all of the following requirements are met.
taxmap/pubs/p970-020.htm#en_us_publink1000178273

Claiming an exemption for you.(p32)

rule
Another taxpayer is claiming an exemption for you if he or she lists your name and other required information on his or her Form 1040 (or Form 1040A), line 6c, or Form 1040NR, line 7c.
taxmap/pubs/p970-020.htm#en_us_publink1000178274

Example 1.(p32)

During 2010, Josh paid $600 interest on his qualified student loan. Only he is legally obligated to make the payments. No one claimed an exemption for Josh for 2010. Assuming all other requirements are met, Josh can deduct the $600 of interest he paid on his 2010 Form 1040 or 1040A.
taxmap/pubs/p970-020.htm#en_us_publink1000178275

Example 2.(p32)

During 2010, Jo paid $1,100 interest on her qualified student loan. Only she is legally obligated to make the payments. Jo's parents claimed an exemption for her on their 2010 tax return. In this case, neither Jo nor her parents may deduct the student loan interest Jo paid in 2010.
taxmap/pubs/p970-020.htm#en_us_publink1000178276

Interest paid by others.(p32)

rule
If you are the person legally obligated to make interest payments and someone else makes a payment of interest on your behalf, you are treated as receiving the payments from the other person and, in turn, paying the interest.
taxmap/pubs/p970-020.htm#en_us_publink1000178277

Example 1.(p32)

Darla obtained a qualified student loan to attend college. After Darla's graduation from college, she worked as an intern for a nonprofit organization. As part of the internship program, the nonprofit organization made an interest payment on behalf of Darla. This payment was treated as additional compensation and reported in box 1 of her Form W-2. Assuming all other qualifications are met, Darla can deduct this payment of interest on her tax return.
taxmap/pubs/p970-020.htm#en_us_publink1000178278

Example 2.(p32)

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 a dependency exemption for Ethan on his or her tax return. Assuming all other qualifications are met, Ethan can deduct this payment of interest on his tax return.
taxmap/pubs/p970-020.htm#en_us_publink1000178279

No Double Benefit Allowed(p32)

rule
You cannot deduct as interest on a student loan any amount that is an allowable deduction under any other provision of the tax law (for example, as home mortgage interest).