Our adult daughter earned about $4600 in 2007. We supported her and paid a lot of medical expenses for her which I know we can deduct with ours. Can we also get a credit for her student loan interest that we paid for her in 2007 (about $1100)? She met the criteria for the qualified student when the loan was made. It was made through the dept. of education since transferred to a private agent. We did not deduct it on her tax return since she did not pay it.

ANSWER: Yes, you are eligible to deduct your daughter's student loan interest on your tax return. Be aware that the credit is reduced if your modified adjusted gross income (AGI) exceeds $110,000 ($55,000 if filing single) and is completely phased out when modified AGI is $140,000 ($70,000 if filing single).