Wednesday, May 26, 2010

If I payed off my student loan in a foreign country (Mexico) last year, can I deduct taxes from that

in my american tax return? I am filing single, in the state of Washington and itemizing.



If I payed off my student loan in a foreign country (Mexico) last year, can I deduct taxes from that debt?

You can if you paid student loan interest on a qualified student loan. Principal payments do not count. Also, if you make enough money, you cannot deduct all or any of the interest, which you might check into if you earned over $100k.



If I payed off my student loan in a foreign country (Mexico) last year, can I deduct taxes from that debt?

no. Not because it is Mexican, but because repaying a loan does not give rise to a deduction. getting a loan is not income and repaying it is not a loss.

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