I am paying on a college loan for my son that i am co-signer on...who is no longer a dependant. Turbo tax says I cant deduct the interest...I was able to do it last year.

[cavehillcow]

I have a 1098-E which he did not claim on his taxes because I am paying the bill

[AnthonyC · Accepted solution]

If he was a dependent when you took out the loan, and you are also legally liable for repayment (i.e. co-signor), and you actually paid the interest, then you are allowed to take the deduction for the interest paid.

Now, when you go to enter this information, make sure you select "You" when it asks you about the loan.  The question in the 1098E section is not asking whose name is on the form, it is asking whose name is on the loan (which as a co-signor would also be you).  Don't select "someone else" or it will disallow the deduction.