@2018taxprep wrote:
I talk to turbo online support. The explained to that I cannot do the above deduction
ie..... Co-signer, who paid monthly payments for dependent daughter, not entitled to take 1098-e deduction
There are some special rules for student loan interest that don't apply to normal deductions.
If you are legally obligated (a co-signer) and you pay the interest, you have two options.
1. Take the interest deduction on your tax return.
2. Your child can take the interest deduction on their tax return as if they paid the interest, even if you paid it. The interest is treated as though you made a gift to your child and your child paid it. (This is not allowed for most other deductions but is allowed for student loan interest.)
You and your child can't both take the deduction.
In all cases, you can take the student loan interest deduction as long as the student was your dependent when the loan was signed, even if they stop being your dependent later.
