Student Loan Interest. My son is unemployed and I pay his student loan (Wells Fargo). Can I claim the student loan interest on my taxes?

[rlecessi]

Received 1098 for interest (addressed to my son)

[xmasbaby0]

Was your son a dependent on your tax return when he took out the loan?   Did you co-sign?

[rlecessi]

Hello and thanks for your prompt reply. My son was a dependent when we took out the loan. I did cosign for him. Thanks.

[xmasbaby0 · Accepted solution]

Yes since you co-signed and you are making the payments you can deduct the interest paid for the student loan.

[rlecessi]

In Turbo, I went to
Deductions & Credits->Education->Student Loan Interest Paid(Form 1098-E)
It says that I can only claim the deduction if the loan is in my (or my wife's) name.

Is this the right place to enter the loan info? Should I use my name since I'm the
cosigner?

[xmasbaby0]

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.

You cannot deduct student loan interest if you are being claimed as someone else’s dependent, or if you are filing as married filing separately.

The student loan interest deduction can reduce your taxable income by up to $2500

There is a phaseout for the Student loan interest deduction, which means the amount you can deduct gets reduced when your modified adjusted gross income hits certain income levels and is even eliminated at certain income levels -  

•If your filing status is single, head of household, or qualifying widow(er), then the phaseout begins at $65,000 until $80,000, after which the deduction is eliminated entirely.

•If your filing status is married filing joint, then the phaseout beings at  $130,000 until $160,000, after which the deduction is eliminated entirely.

 Enter the interest you paid for your student loan by going to Federal>Deductions and Credits>Education>Student Loan Interest Paid in 2021 (Form 1098E)