Learning Credit question

[RESORT2ME Senior Member Find all posts View Profile Close RESORT2ME]

Amber took out Student Loans for getting Medical Assistant education in 2008.

I didn't lke the impending interest rate, so I paid off her loans ($22,000).

I go to file my tax forms... AARP tax assistant says I can claim interest paid only. We filed an Education Credit of $533.

I figured the Form 8863 and that $533 appears to be the max allowed. BUT, that just doesn't seem right... pay out 22,000 to get her some education and avoid taxation on 533?

[mdurette Senior Member Find all posts View Profile Close mdurette]

That sounds right to me.

On any deduction (compare to a home mortgage) you can only deduct the interest paid. You can't deduct the principal.

[RESORT2ME Senior Member Find all posts View Profile Close RESORT2ME]

OK, just thought I may be missing something.

Thanks