I paid student loan interest on our grandson's loan as we are co-signers. Can we deduct the interest?"

[MargaretL · Accepted solution]

Yes, you can deduct student loan if you are liable to pay it (and you are as a co-signer) and actually paid it (and providing you meet general qualifications I listed below).  Here is data entry:

1. Federal Taxes 
2. Deductions & Credits
3. Education
4. Select Student Loan Interest Paid (Form 1098-E)

The issue may arise if the form 1098-E is not in your name. However, if you ever receive a letter from the IRS to "prove" that you were obligated to pay the loan, you can simply send them a copy of the loan with your name on it.

You can only deduct Student Loan Interest   if all of the following apply:

• You paid interest on a qualified student loan in tax year 2016
• You are legally obligated to pay interest on a qualified student loan
• Your filing status is not married filing separately
• Your MAGI is less than a specified amount which is set annually, and
• You or your spouse, if filing jointly, cannot be claimed as dependents on someone else's return