I have one child who graduated in 2020 and one still in college. Both have student loans in their names on which I am cosigner. When preparing my return, Turbo tax advice said I was not eligible to deduct student loan interest because loan is not in my name, but that student could deduct on their return. When preparing my daughter's return, it said that she is not eligible to deduct because she is claimed as dependent on my return. Thus, no one gets to deduct this interest. Is that true? Thx.
No, you can claim the interest on your return if you are claiming the child as a dependent and a co-signer - thus legally obligated to pay the debt. Go back through the interview and update your answers. If you are claiming them as dependents - they cannot take the deduction on their returns.
How much can I deduct?
Qualifications:
You can claim the deduction if all of the following apply:
Since you are the co-signer, you may deduct the interest payments you make.
You have to meet the rules, which are:
If your daughter pays it, she may deduct it. But, if she is still your dependent, she cannot.