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shawnMsrm
Level 2

Daughter-freshman. Loan (I cosigned). I paid $200 interest. I will apply 1098-T to my taxes. I wont have $600 interest, so no 1098-E. Can I still use $200 on my taxes?

 
4 Replies
xmasbaby0
Level 15

Daughter-freshman. Loan (I cosigned). I paid $200 interest. I will apply 1098-T to my taxes. I wont have $600 interest, so no 1098-E. Can I still use $200 on my taxes?

 

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 2019 (Form 1098E)

Look on your 2019 Schedule 1 line 20 to see your student loan interest deduction

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
shawnMsrm
Level 2

Daughter-freshman. Loan (I cosigned). I paid $200 interest. I will apply 1098-T to my taxes. I wont have $600 interest, so no 1098-E. Can I still use $200 on my taxes?

Thank you. I did co-sign for the loan and I am claiming my daughter as a dependent (Child Other Dependent). I am filing Married / Jointly.

 

The 1098-T is in her name; however, I understand I can apply it to mine or her taxes. I am apply it to my taxes. Is that correct in my understanding I can apply it to my taxes?

 

For the 1098-E, we will not receive a 1098-E since I would have paid less than $600 in interest.  OK to still use the $200 in interest without having a 1098-E?

 

 

 

xmasbaby0
Level 15

Daughter-freshman. Loan (I cosigned). I paid $200 interest. I will apply 1098-T to my taxes. I wont have $600 interest, so no 1098-E. Can I still use $200 on my taxes?

 

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 2019 (Form 1098E)

Look on your 2019 Schedule 1 line 20 to see your student loan interest deduction

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
Hal_Al
Level 15

Daughter-freshman. Loan (I cosigned). I paid $200 interest. I will apply 1098-T to my taxes. I wont have $600 interest, so no 1098-E. Can I still use $200 on my taxes?

Yes, you qualify to claim the $200 interest adjustment to income (deduction). A 1098-E is not required.

 

You are also correct to apply her 1098-T to your taxes, since she is your dependent. This assumes she has more qualifying expenses  than scholarships.  

 

 

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