I am legally obligated to pay the loan as a cosigner, but the 1098-E is in his name. He has not paid any of the loan or interest. He has given me the 1098-e and will not be claiming the interest on his taxes. We will both be filing as single with no one else claiming us dependents.
Actually, no, in this instance. She wrote that both she and her son would be filing Single, not being listed as a dependent on another's taxes. She can only deduct if her son is her dependent.
From the prior poster's cited link:
"...for yourself, your spouse, or your dependent is deductible."
@JJ59 Sorry--there is no requirement that the son must be a dependent. Only that the person paying for the student loan either signed or co-signed and is legally obligated to pay the loan. in order to get the tax deduciton. You might be confused by the rule that the person paying cannot get the deduction if the person paying is a dependent on someone else's return. The parent paying the loan does NOT have to claim the student (or former student) as a dependent.
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 2018 (Form 1098E)
Thanks. I was going off of this from the Intuit FAQ, "...or as a parent making payments on your dependent student’s loan." But I failed to note the following part, "For you, your spouse, or a person who was your dependent when you took out the loan". The important part of "when the loan was taken out."
And Intuit is quoting the specific IRS Topic on the issue at: https://www.irs.gov/taxtopics/tc456
So, as the co-signer had the Student listed as a dependent "who was your dependent when you took the loan", one can still deduct it after the student is no longer a dependent. Sorry for confusing things.