Can I claim the student loan interest, if I am the co-borrower on my son's student loans and I make the monthly loan payments (he is a senior in college)?

[xmasbaby0]

If you signed or co-signed you can deduct the interest you paid in 2020.

STUDENT LOAN INTEREST

Only the person whose name is on the student loan and who is legally obligated to pay the loan can deduct the student loan interest.  If you did not sign or co-sign for the loan you cannot deduct the interest.

You cannot deduct student loan interest if you are being claimed as someone else’s dependent, or if you are filing as married filing separately.

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 2020 (Form 1098E)

Look on your 2020 Schedule 1 line 20 to see your student loan interest deduction

[Opus 17]

Yes, if you are a co-signer, and your child was your tax dependent in the year when the loan was made.

Further, you can continue to deduct the interest, if you pay it, for as long as the loan exists, even when your son is no longer your dependent, as long as he was your dependent when the loan was made.

And one more thing.  If at some time it is more financially useful for your son to claim the loan interest on his return (such as your deduction is limited by your income), this is also allowed.  You can treat the situation as if you made a money gift to him and he made the loan payments.  (This is a special rule for student loans that does not apply to most other tax situations.)

[to29065]

What if I'm the co-signer of my son's student loan (he is a dependent), but the loan provider will not send me a 1099-E in my name.  The will only provide one in my son's name.  Can I still claim the interest paid?

[Hal_Al]

You don't need the 1098-E.  You may claim the deduction without.  Not having it slightly increases you chances of an IRS inquiry.  But you can easily prove you qualify. 

[DawnC]

Yes, see the requirements below.  

Qualifications:

You can claim the deduction if all of the following apply:

• You paid interest on a qualified student loan in tax year 2021.
• You or your spouse, if filing jointly, can't be claimed as dependents on someone else's return. (You can take the deduction as a student. If you're a parent making payments on your dependent student’s loan, you can also take the deduction).
• 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.

Here's how to enter your student loan interest in TurboTax.   We'll ask you questions to make sure you qualify and also calculate how much of a deduction you’re entitled to.

@to29065

[merewetherc]

Can I claim the payoff, and/or the interest on it, of a student loan on which I was the co-signer and grandmother of the student?

[DoninGA]

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@merewetherc wrote:

Can I claim the payoff, and/or the interest on it, of a student loan on which I was the co-signer and grandmother of the student?

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If the student was Not your dependent when the loan was taken out then you cannot claim any interest paid on the loan even if you were a co-signer.

[Opus 17]

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@merewetherc wrote:

Can I claim the payoff, and/or the interest on it, of a student loan on which I was the co-signer and grandmother of the student?

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You can only take the interest deduction if the student was your tax dependent at the time the loan was taken out.

However, the student can claim the interest deduction even if someone else pays the loan.  This is a special rule for student loans, since in most cases, only the person who pays an expense can deduct it.  

The payoff amount is never deductible no matter who pays it, only interest.  And there are income limits on the student loan interest deduction.