Solved: I paid student loan interest on our grandson's loan as we are co-signers. Can we deduct the interest?"
Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
Announcements
TurboTax has you covered during Covid. Get the latest second stimulus info here.
cancel
Showing results for 
Search instead for 
Did you mean: 
New Member

I paid student loan interest on our grandson's loan as we are co-signers. Can we deduct the interest?"

 
1 Best answer

Accepted Solutions
Level 9

I paid student loan interest on our grandson's loan as we are co-signers. Can we deduct the interest?"

Yes, you can deduct student loan if you are liable to pay it (and you are as a co-signer) and actually paid it (and providing you meet general qualifications I listed below).  Here is data entry:

  1. Federal Taxes 
  2. Deductions & Credits
  3. Education
  4. Select Student Loan Interest Paid (Form 1098-E)

The issue may arise if the form 1098-E is not in your name. However, if you ever receive a letter from the IRS to "prove" that you were obligated to pay the loan, you can simply send them a copy of the loan with your name on it.

 

You can only deduct Student Loan Interest   if all of the following apply:

  • You paid interest on a qualified student loan in tax year 2016
  • 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

View solution in original post

1 Reply
Level 9

I paid student loan interest on our grandson's loan as we are co-signers. Can we deduct the interest?"

Yes, you can deduct student loan if you are liable to pay it (and you are as a co-signer) and actually paid it (and providing you meet general qualifications I listed below).  Here is data entry:

  1. Federal Taxes 
  2. Deductions & Credits
  3. Education
  4. Select Student Loan Interest Paid (Form 1098-E)

The issue may arise if the form 1098-E is not in your name. However, if you ever receive a letter from the IRS to "prove" that you were obligated to pay the loan, you can simply send them a copy of the loan with your name on it.

 

You can only deduct Student Loan Interest   if all of the following apply:

  • You paid interest on a qualified student loan in tax year 2016
  • 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

View solution in original post

Dynamic Ads
v
Privacy Settings