Can i deduct student loan interest if i am cosigner?

[Al in NH]

So where can the co signer of the loan enter the deduction in Turbo Tax? 

[DawnC]

Co-signing on the loan equates to being legally obligated to pay the loan.   You have to claim the dependent and be legally obligated to pay the loan in order to claim the interest.   All of the qualifications are below.

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

• You paid interest on a qualified student loan in tax year 2022
• 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

How to enter 1098-E - this link will tell you where to enter the deduction.  @Al in NH 

[Al in NH]

But she's not a dependant. She lives away from home is is in her 30's Files her own taxes but does not claim this deduction because her mother pays the loan.  My issue is where in Turbo tax can I enter this deduction.

[ThomasM125]

You can't claim the deduction since your child is not your dependent.

@Al in NH

[Hal_Al]

@Al in NH 

Q. Do I just click its my name on the 1098-E in your opinion? 

A. Yes. 

You may only, claim the interest deduction if you are legally obligated to pay it (as well as you actually paid it).  That is, the loan must be in your name or you co-signed for it. It does not matter that the 1098-E is in the student's name.  One additional requirement: the student must have been your dependent at the time the student loans were used to pay expenses.

[Pv66]

How about interest on a refinanced student loan?  Student was a dependent when original Sallie Mae loan was taken out and used, I was a co-signer. Student no longer a dependent, but we refinanced original loan with a private student loan in early 2022, again with me as co-signer. I have made all payments on this refinanced loan. Can I deduct interest still?

[Hal_Al]

Q. How about interest on a refinanced student loan?  Student was a dependent when original Sallie Mae loan was taken out and used, I was a co-signer. Student no longer a dependent, but we refinanced original loan with a private student loan in early 2022, again with me as co-signer. I have made all payments on this refinanced loan. Can I deduct interest still?

A. Yes. 

You said Student was a dependent when original Sallie Mae loan was taken out. I take that to mean that the student was also your dependent at the time the student loan was used to pay educational expenses, which is technically the requirement. 

[gayleraz]

I cannot help you, but also have the same situation.  The co-signer's name is not on the 1098-E, so Turbo Tax instructs that you cannot take the deduction when you can!  Ugh!  I don't know what to do either.

[MonikaK1]

See IRS Publication 970 for details on the requirements for eligibility to claim interest from Form 1098-E.  See also DawnC's response above.

If you meet the qualifications, but your name is not listed on the form, you can choose to claim the interest; however, be sure to have evidence available that you qualify in case of an IRS audit.

[FFATX]

What if I can't claim my son as a dependent because he is over the age limit but I am the cosigner on his school loan and I have paid the interest and he didn't worked enough to be able to deduct the loan interest?

[Hal_Al]

Q. What if I can't claim my son as a dependent because he is over the age limit but I am the cosigner on his school loan and I have paid the interest and he didn't worked enough to be able to deduct the loan interest?

A. Yes, you may deduct the interest, on your tax return. 

You may only, claim the interest deduction if you are legally obligated to pay it and  you actually paid it.  Co-signing counts as being legally obligated.  It does not matter that the 1098-E is in the student's name. It does not matter that he is not currently your dependent,  as long as he was  your dependent at the time the student loans were used to pay college expenses.

[larryrie]

How does this apply if the loan balance is still being repaid by the cosigner parent if the student is no longer a dependent?

[Hal_Al]

You can claim the interest deduction, if you meet the three requirements:

1. You paid the interest
2. You are legally obligated to pay it (co-signing counts)
3. The student was your dependent, at the time the loan was used to pay for qualified educational expenses (the TT pop up says “when you took out the loan”). He does not have to be a dependent now, when you are making the payments.