ForumsTaxes and Payroll

On tax form 1040 line 34 "Tuition and fees deduction. Attach Form 8917"

It states
"You may be able to take the deduction if you, your spouse, or a
dependent you claim on your tax return was a student enrolled at
or attending an eligible educational institution. The deduction is
based on the amount of qualified education expenses you paid for
the student in 2007 for academic periods beginning in 2007 and
the first 3 months of 2008."

If the payment was made via a loan in 2005 but the loan payment was paid in full durring 2007 can you deduct the 2007 payment on your 2007 tax return or would the payment to the school from the lender be considered the payment?

When i received funding for school i had no income so a deduction in 2005 was not attained, nor was it reported. In 2007 the full loan amount was paid, with income from 2007.