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jamesduff
New Member

Parent co-signed child's student load. Parent paying interest only from the start of the load while the student is a full time student. Where to report on tax return?

 
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AnthonyC
Level 7

Parent co-signed child's student load. Parent paying interest only from the start of the load while the student is a full time student. Where to report on tax return?

Its entered in the same place as all student loan interest paid (Form 1098E), which can be found in the Education section of Deductions and Credits.  You can enter this by using the search (upper right corner of your TurboTax screen) - search for 1098E (make sure enter the E because there is another form for mortgage interest that is 1098) and click "jump to 1098E".  This will bring you to the right section.

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.

Note:  You are only able to claim this interest paid since you are also a co-signor.  If the student has loans that you are not a co-signor on, but you are still paying the interest, then that interest is not deductible by you. 

As a parent, you can claim the deduction if all of the following apply:
  • You paid interest on a qualified student loan in the tax year 2017 (student must have been a dependent on your return when the load was taken out in order to be a qualified loan);
  • You're legally obligated to pay interest on a qualified student loan (you must at least also be a co-signor);
  • Your filing status isn't married filing separately;
  • Your MAGI is less than a specified amount which is set annually; and
  • You or your spouse, if filing jointly, can't be claimed as dependents on someone else's return.



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