student loan interest

[robd454]

My daughter received a 1098-E for student loan interest. she is being claimed as a dependent on my(her farther's) tax return. I did co-sign her loan but did not receive a 1098-E. Not sure if I was suppose to? Right now neither one of us can claim the interest. Can anyone claim this? My name is not on her 1098-E statement.

[SusanY1]

Unfortunately, no.  Student loan interest for a dependent is not deductible.  

When she is filing her own tax return in the future, she may be able to deduct the current year's interest, but unfortunately this interest isn't deductible by anyone.  

[xmasbaby0]

Hold on---did you make the payments?  Did you co-sign for the loan?  If both of those things are the case, then you certainly can claim the interest on the loan payments.  It has nothing to do with whether you are claiming her as your dependent right now.  The deal is SHE cannot take the deduction while she is a dependent on someone else's tax return.

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 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 2019 (Form 1098E)