1098e

[ourfamily123]

We claim our 21 yr old as dependent. She just graduating college this past dec 2019 and was full time. She has part time job snd fills out the 1040ez along checking off we claim her.

she has a 1098e form for loan interest. We have never claimed it and neither has she. She has been paying down her loans throughout past 4 yrs. we have been paying her out of pocket expense to the school. The education loans are in her name not our and no parent plus loans either.

can we claim  the 1097e for 2019?

if so would it be beneficial to amend past few years taxes and and claim it?

[KatrinaB48]

Yes, you should file Form 1098-E and claim the student loan interest since your daughter was your dependent during 2019. How much it will benefit you to amend prior year returns depends on your tax bracket. The student loan interest deduction is claimed as an adjustment to income which means it lowers your gross income for the year. Therefore, it could lower your taxable income and increase your refund by the amount of tax saved. The maximum amount of student loan interest that can be claimed this year and in previous years is $2,500. So claiming the interest could reduce your income by up to $2,500.