I was a cosigner and paid off my daughters student loan last year? If my name isn't on the 1098-E, can I still use it for deductions?

[srcu496164]

My daughter is on disability and can not use the form as a deduction for that reason. But we paid over $8k in interest last year.

[DianeW777]

It depends.  See the necessary qualifiers below.

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; and
• Paid or incurred within a reasonable period of time before or after you took out the loan.

You can claim the deduction if all of the following apply:

• You paid interest on a qualified student loan in tax year 2023;
• 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. 
  • IRS Topic 456 - Student Loan Interest
  • IRS Publication 970

[Hal_Al]

Q. I was a cosigner and paid off my daughters student loan last year? If my name isn't on the 1098-E, can I still use it for deductions?

A. Yes.  Enter the 1098-E, as if it was yours.

You can claim the interest deduction, if you meet the three requirements:

1. You paid the interest
2. You are legally obligated to pay it (co-signing counts)
3. The student was your dependent, at the time the loan was used to pay for qualified educational expenses. She does not have to be your dependent now.