1098e i am cosignor on daughters student loan she defaulted and now I am legally responsible for the debt. can I claim the interest paid?

[projoe6881]

The bank reported the default on my credit so I had no choice but to start paying the loan. If it is being reported on my credit, doesn't that make me legally responsible for the loan even if the 1098e is in my daughter's name?

[Phillip1 · Accepted solution]

Yes.

You can claim student loan interest as a deduction if all of the following applies:

From IRS Publication 970 (https://www.irs.gov/publications/p970/ch04.html#en_US_2016_publink1000178272)

• Your filing status is any filing status except married filing separately.

• No one else is claiming an exemption for you on his or her tax return.

• You are legally obligated to pay interest on a qualified student loan.

• You paid interest on a qualified student loan.

[projoe6881]

So to clarify, according to Turbo Tax, if my name is not on the 1098e form, I cannot claim the interest. My name is not, yet, as cosigner, I am legally obligated to pay back the loan, and have been. So there is a conflict as to when it is and when it is not deductible.

[Phillip1]

Although the 1098-E was not issued in your name, you meet the requirements to claim the deduction. Therefore, I recommend marking that the 1098-E was in your name, and keep records showing that the student loan collector has forced you to make the payments.