1098-T - Cosigned loan

[alsphinx]

My son is in college, my wife and I are filing as married, and she cosigned the student loans.  Can/do we claim the 1098-T on our taxes for the amount reported as paid?  I am not talking about the interest reported on the 1098-E.

[xmasbaby0]

If your son is claimed as a dependent on you return--or was a dependent at the time she co-signed----then you can claim the INTEREST paid on the student loan.  There is no deduction for the principal paid on the loan.

The student loan interest deduction can reduce your taxable income by up to $2500

There is a phaseout for the Student loan interest deduction, which means the amount you can deduct gets reduced when your modified adjusted gross income hits certain income levels and is even eliminated at certain income levels -  

•If your filing status is single, head of household, or qualifying widow(er), then the phaseout begins at $65,000 until $80,000, after which the deduction is eliminated entirely.

•If your filing status is married filing joint, then the phaseout beings at  $130,000 until $160,000, after which the deduction is eliminated entirely.

 Enter the interest you paid for your student loan by going to Federal>Deductions and Credits>Education>Student Loan Interest Paid in 2022 (Form 1098E)

[Hal_Al · Accepted solution]

 Q. Can/do we claim the 1098-T on our taxes for the amount reported as paid? 

A. Yes, as long as he qualifies as your dependent. 

For the dependent support test, student loan money is usually considered as support that the student, himself, provided. However, if the parent co-signed the loan, loan money is considered to be support provided by the parents.