can i claim tax interest on a student loan on my taxes if i transfered the balance to a credit card?
I transfered the loan half way through the year to a credit card because of a better interest rate than AES(American education Sevices).
Wanted to know if I can claim any of the interest now that its on a credit card for my taxes?
The credit card has only the student loan and nothing else on it. It had a zero balance and nothing has been added except the student loan
Nope. You can’t deduct the interest on the credit card no matter where the balance came from.
You should be able to claim the interest for the portion of the year that it was actually a qualified student loan. However as soon as you transferred the balance, you basically paid off the tax deductible loan with a new loan that had no tax benefits.
The lesson: Always consider the tax consequences of financial decisions before you take action.
