Is student loan interest deductible?

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 co-signed then you are legally obligated to pay if the primary borrower defaults or does not pay.    If you did not sign or co-sign for the loan you cannot deduct the interest.

 

WHERE DO I ENTER STUDENT LOAN INTEREST

https://ttlc.intuit.com/turbotax-support/en-us/help-article/tax-credits-deductions/enter-student-loan-interest-form-1098-e/L1QGfOUCp_US_en_US?uid=m6egbegu

Yes, however, you cannot deduct it if you are married filing separately or earn more than $95000 if single.

 

Tax benefits for Education.

 

My son claimed his student loan deductions on his personal return however he still fits the criteria as a dependent. When Turbotax asks me about my dependents he qualifies (lives with us, full time student, no one else can claim him, etc). What I have been reading says though he is not a dependent and cannot be claimed as such on my return because he claimed the student interest deduction. Any insight? Which is correct? It would seem Turbotax would ask that question to help determine qualification. Thanks! 

Step 1 - Find out if he qualifies as a dependent. Take the quick quiz, Dependent - Who can I claim? using the  IRS Worksheet for Determining Support.

 

Step 2 - If he is not your dependent, proceed without him. 

If he is your dependent:

• He will need to get an identity protection pin from the IRS for you to file and claim him as a dependent. See Get an Identity Protection PIN (IP PIN).
• He will need to amend his return and mark that he can be claimed and remove the interest.

A dependent may not claim the student loan interest.  Topic no. 456, Student loan interest deduction states: You can claim the deduction if all of the following apply:

• You paid interest on a qualified student loan in tax year 2024;
• 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; and
• Neither you nor your spouse, if filing jointly, were claimed as dependents on someone else's return. Another taxpayer is claiming you as a dependent if they list your name and other required information on page 1 of their Form 1040, 1040-SR, or 1040-NR.

@RHG1 

Thanks for the info! 

 

So in short if he has already claimed the interest deduction (he is primary for the loan and I am cosigner) then I need to remove him as a dependent on my return, correct? That would be easier than him filing an amended return? 

 

Easier is you not claiming - but is that the right thing?  We don't know all of the facts in this case. The dependent quiz I posted earlier is your best bet for a correct decision.