Hi,
Does anyone know if the following in bold is correct?
"... To claim the student loan interest deduction, the borrower must be 1) legally obligated to make the payments on the student loans (this includes co-signers who are legally obligated) and 2) the Student must currently be a dependent of the Cosigner, or 3) the student must have been a dependent of the Cosigner at the time that the loan was approved."
Bolded "3)" is the item of concern. It's not unusual for parents to continue to assist graduate students with interest-only payments, even though the graduate student has passed the age limit for dependent status (ie. 24 or older).
IRS Publication 970 "Tax Benefits for Education" makes no mention of this technicality. I appreciate any advice.
Thanks . . .
