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New Member
posted Feb 8, 2021 6:03:45 PM

Student Loan

I took out a student loan for my granddaughter in order to get a lower interest rate.  I make the monthly payments and she reimburses me.  Can I claim the student loan interest on the Form 1098-E?  I would pass on the tax savings to her.  

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2 Replies
Level 15
Feb 8, 2021 6:20:56 PM

You could only claim the student loan interest deduction if the student were your dependent when the loan was made. 

Expert Alumni
Feb 8, 2021 6:25:24 PM

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

  • You paid interest on a qualified student loan in tax year 2020.
  • You can take the deduction as a student, or as a parent making payments on your dependent student’s loan. However, you or your spouse, if filing jointly, can't be claimed as dependents on someone else's return.
  • 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.

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