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Reporting student loan interest

4Rufus — Mon, 13 Apr 2020 00:46:17 GMT

A Student loan was taken out for son who graduated a year ago from college. He however has paid off the entire student loan himself. Since the 2019 1098 form only reflects his moms' personal information as the borrower. Does this mean only she can report the loan interest on our 1040 form even though she did not pay anything towards paying off the student loan?

Re: Reporting student loan interest

VictoriaD75 — Mon, 13 Apr 2020 22:45:16 GMT

Per the IRS, you can claim the deduction if all of the following apply:

You paid interest on a qualified student loan in tax year 2019;
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.

The second one is the big question. If the mom was the only one on the loan and legally obligated to pay, then she would be the only one allowed to take the deduction.

IRS Student Loan Interest Deduction

Re: Reporting student loan interest

4Rufus — Wed, 15 Apr 2020 20:22:19 GMT

I'm still unclear about one thing that being although my wife is obligated for the loan repayment it's our son who is making the payments. Based on the response provided every other criteria is met for us to claim the student loan interest except it is him and not her making the payments. So is it a all or nothing situation in meeting the criteria points?

Re: Reporting student loan interest

4Rufus — Wed, 15 Apr 2020 20:28:15 GMT

Okay, I've reread the response and and believe it answered the question of all or nothing. However, the loan is in her name and reported under her social security number on the 1098E. I guess I need to review how the loan is titled. If our son appears nowhere on the loan I assume we can report the loan interest. Is this correct?