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Claimed Student Loan Interest
It is petitioners’ position that they are entitled to deduct
student loan interest of $633 in determining adjusted gross
income for their taxable year 2003. On brief, petitioners argue:
Taxpayers contend that the $633.00 deduction which
they claimed [as a tuition and fees deduction15] in
2003 on line 26 of their 1040 income tax return is in
fact interest paid on student loans. The deduction was
inadvertently entered on the wrong line and should have
been deducted on line 25 of the tax. As interest paid
on student loans, the item is an allowable deduction
and should not be disallowed.
14(...continued)
portion of the premium for their homeowner’s insurance policy
that they claim as a deduction for each of their taxable years
2001 through 2003, on the record before us, we find that peti-
tioners have failed to carry their burden of establishing that
they paid or incurred such premium, the manner by which they
determined the claimed deductible portion of such premium, and
the propriety of claiming a portion of such premium under sec.
162. With respect to the delinquent New York state sales tax
that petitioners claim as a deduction for their taxable year
2004, on the record before us, we find that petitioners have
failed to carry their burden of establishing the amount of such
tax, that Mr. Agbaniyaka paid such tax, and the propriety of
claiming such tax under sec. 162.
15Mr. Agbaniyaka incorrectly testified that “he did not take
a tuition deduction” in petitioners’ 2003 return. Petitioners
claimed a tuition and fees deduction in the 2003 return and did
not claim a student loan interest deduction in that return. With
respect to the tuition and fees deduction that petitioners
claimed in the 2003 return, respondent states on brief: “Peti-
tioners paid the tuition and fee deduction amount of $633 for tax
year 2003. Based on the Court’s determination, a recomputation
of the tuition and fees deduction for tax year 2003 will be
required.” It appears that the “Tuition and Fees Deduction
Worksheet” for petitioners’ taxable year 2003 that is included in
the notice contains an error in that it does not list any “quali-
fied tuition and fees * * * paid in 2003.” The Court expects
respondent to correct any such error in the computation under
Rule 155.
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Last modified: November 10, 2007