Can I deduct dep. child 1098-E on my return? TT giving conflict info: Says I can't but dep. child can on THEIR return. But on DC ret says can't because are a dependent.

Forum|Forum|7 years ago
June 1, 2019
1 reply
15 views

No text available

TurboTax Free Edition Online

Best answer by AnthonyC

One of the rules for claiming the student loan interest deduction is that you are not being claimed as a dependent on another person's return. So, your child would not be eligible to claim the interest paid if they are your dependent.

The screen is trying to make it clear that you can't claim a child's student loan interest just because they are a dependent on your return. The second sentence should probably be in a new paragraph or have a further qualifier - you child can deduct the interest on their return - but not if they are a dependent on your return.

But, it is possible for you to claim the interest paid under a certain set of conditions. If your child was a dependent when you took out the loan, and you are also legally liable for repayment (i.e. co-signor), and you actually paid the interest, then you are allowed to take the deduction for the interest paid.

There are also a few other overall rules that must be satisfied. You can claim the deduction if all of the following apply:

You paid interest on a qualified student loan in the tax year 2017;
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; and
You or your spouse, if filing jointly, can't be claimed as dependents on someone else's return.

https://www.irs.gov/taxtopics/tc456.html

A

AnthonyCAnswer

Level 12

One of the rules for claiming the student loan interest deduction is that you are not being claimed as a dependent on another person's return. So, your child would not be eligible to claim the interest paid if they are your dependent.

The screen is trying to make it clear that you can't claim a child's student loan interest just because they are a dependent on your return. The second sentence should probably be in a new paragraph or have a further qualifier - you child can deduct the interest on their return - but not if they are a dependent on your return.

But, it is possible for you to claim the interest paid under a certain set of conditions. If your child was a dependent when you took out the loan, and you are also legally liable for repayment (i.e. co-signor), and you actually paid the interest, then you are allowed to take the deduction for the interest paid.

There are also a few other overall rules that must be satisfied. You can claim the deduction if all of the following apply:

You paid interest on a qualified student loan in the tax year 2017;
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; and
You or your spouse, if filing jointly, can't be claimed as dependents on someone else's return.

https://www.irs.gov/taxtopics/tc456.html

O

okanesAuthor

Level 2

Thanks Anthony for the clarification. As I am not co-signer I can not, alas, claim the deduction. I agree that the 1098-E "help" paragraph that popped up in my (the parent's) return should be rewritten, as the flagrant ambiguity caused me (and possibly others) to do further/unnecessary research. Still a big fan though 🙂