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?

[sbenway10]

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.

[MargaretL]

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

[lenn]

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

Thank you

[DawnC]

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:

• Where do I enter student loan interest (Form 1098-E)?   @lenn