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New Member
posted Jun 3, 2019 5:24:30 PM

I am a co-signer on my adult son's student loan. He ius not deducting the interest paid in 2016. Can I deduct it?

My son is an adult, does not live with me (not a dependent), but I am, and have been, a co-signer on the loan ( to get him a lower intererst rate). I made no payments for him, but am financially liable for repayment. Can I deduct the interest paid in 2016? He does not deduct it.

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3 Replies
Expert Alumni
Jun 3, 2019 5:24:31 PM

No, you cannot deduct the interest because you did not make the payments. You meet one qualification for deduction since you are a co-signer.. but you must also meet the other qualification which says you must have paid the loan.

You can only deduct student loan interest if all of the following apply:

  • You paid interest on a qualified student loan in tax year 2015
  • You are legally obligated to pay interest on a qualified student loan
  • Your filing status is not married filing separately
  • Your MAGI is less than a specified amount which is set annually, and
  • You or your spouse, if filing jointly, cannot be claimed as dependents on someone else's return

New Member
Feb 16, 2021 11:02:20 AM

We paid off the student loan for our adult daughter that we were cosigned on. Can we deduct this?

Thank you

Expert Alumni
Feb 16, 2021 11:11:25 AM

If you paid the loan and meet these requirements below, you can deduct the related interest.     You can claim the deduction if all of the following apply:

 

  • You paid interest on a qualified student loan in the tax year 2020.
  • You can take the deduction as a student, or as a parent making payments on your dependent student’s loan. However, you or your spouse, if filing jointly, can't be claimed as dependents on someone else's return.
  • 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.

A qualified student loan is a loan you took out solely to pay qualified higher-education expenses that were:

  • For you, your spouse, or a person who was your dependent when you took out the loan.
  • For education provided during an academic period for an eligible student.
  • Paid or incurred within a reasonable period of time before or after you took out the loan.

For general state-specific questions, click here to find your state’s Department of Revenue.

 

Related Information: