student loan interest

[ripper1]

I have a heloc which I have used exclusively for college tuition for my son and daughter and therefore I have been writing off the interest on such for up to 2500. This year they will no longer be considered dependents and I no longer will have them as exemptions on my form. I am legally responsible for the repayment of this heloc, can I continue to write the interest off. I looked at Pub 970 and it is kind of vague concerning this. Does anybody know the answer to this question. I would call the IRS but sometimes they don't have the right answer and I don't want to draw any attention?

 

[jimnjana]

Pub 936 I think addresses this. Your heloc interest is fully deductible if amt of Heloc was less than 100k...if you only have been deducting 2500, you may want to go back and amend your tax returns to claim all of the interest as a deduction.

 

[FUEGO]

There is an above the line deduction that allows up to $2500 to be deducted for qualified student loan interest. I was not aware that you could deduct HELOC interest, even if used solely for college tuition, under this $2500 above the line category.

Now, if you are deducting the interest as an itemized deduction, you can probably deduct more than $2500 until the debt is paid.

 

[jimnjana]

There is an above the line deduction that allows up to $2500 to be deducted for qualified student loan interest. I was not aware that you could deduct HELOC interest, even if used solely for college tuition, under this $2500 above the line category.

You can't. If that is what was done, ammended tax returns should be filed to correct prior year tax returns.