1097e

When should a dependent grad school student claim the 1098e or isnt it worth it to itemized?

since we claim her she uses 1040ez.

118

Expert Alumni

Feb 24, 2020 5:51:14 AM

Student Loan Interest is not an itemized deduction. It's a deduction from income.

If the student and the parent have both signed the Student Loan documents, meaning, both are obligated to pay the student loan back, then either can claim the Student Loan Interest.
Generally, the person whose tax return it benefits more may claim it.

There are qualifications to deduct Form 1098-E Student Loan Interest. You can claim the deduction if all of the following apply:

You paid interest on a qualified student loan in tax year 2019.
You can take the deduction as a student, or as a parent making payments on your dependent student’s loan. However, you or your spouse, if filing jointly, can't be claimed as dependents on someone else's return.
You're legally obligated to pay interest on a qualified student loan.
Your filing status isn't married filing separately.
Your MAGI is less than a specified amount, which is set annually.