topic 1098-E in Education

1098-E

Mkvech — Sat, 22 Feb 2025 18:38:32 GMT

My son received a 1098-E with my name on it, I do not claim him, but my name is on the 1098-E. I tried to claim it on Turbo tax, but it keeps reference me as the student. I don't believe that is correct.

He is no longer in college can he claim it.

Re: 1098-E

SabrinaD2 — Sun, 23 Feb 2025 13:29:51 GMT

If Your Son is Your Dependent:

If your son is your dependent, neither you nor your son can claim the student loan interest deduction. This is because the person who is legally obligated to pay the interest (your son) is being claimed as a dependent

If Your Son is Not Your Dependent:

If your son is not your dependent and he paid the interest, he can claim the student loan interest deduction on his tax return

If It's a Parent PLUS Loan:

If you took out a Parent PLUS loan and are legally obligated to pay the interest, you can claim the student loan interest deduction, even if your son is not your dependent.

Income Limits for Claiming the Deduction:

For 2024, the amount of your student loan interest deduction is gradually reduced (phased out) if your MAGI is between $80,000 and $95,000 ($165,000 and $195,000 if you file a joint return). You can’t claim the deduction if your MAGI is $95,000 or more ($195,000 or more if you file a joint return).

For more details, you can check out the IRS page on student loan interest deduction and this TurboTax guide on 1098-E.

Re: 1098-E

Hal_Al — Sun, 23 Feb 2025 13:53:12 GMT

You can claim the interest deduction, if you meet the three requirements:

You paid the interest
You are legally obligated to pay it (co-signing counts)
The student was your dependent, at the time the loan was used to pay for qualified educational expenses (the TT pop up says “when you took out the loan”)

There shouldn't be any reference to you as the student. Try deleting the 1098-E and re-entering it. Otherwise ignore it.

Your son can only claim it if:

He paid the interest
He is legally obligated to pay it
He was the student the loan was for

Re: 1098-E

Mkvech — Sun, 02 Mar 2025 13:20:00 GMT

I understand what you are saying but can't seem to get the info inputted on the form correctly

1) The loan is in my name only but was for my son's education he is paying the loan.

2) The loan is a Edfinancial Services loan

3) He is no longer in school and received degree for a 4-year program. he has been out of school for coming up 2 years now

4) Turbo Tax says he doesn't qualify; no one claims him, why doesn't he qualify??

Re: 1098-E

BrittanyS — Sun, 02 Mar 2025 13:36:20 GMT

Here are a few reason why it may be saying you are not eligible to claim the student loan interest:

In order to qualify for the student loan interest deduction the following must apply:

You cannot be married filing separately
Neither you nor your spouse can be claimed as dependents on someone else's return
Your Modified Adjusted Income must be less than $95,000 if not married and less than $195,000 if you are married

Also, keep in mind the student loan deduction is a deduction not a credit. This means if your taxable income has been reduce to 0, it will not add to your refund. The deduction can only be used to the point to reduce taxable income to $0.

@Mkvech

Re: 1098-E

Hal_Al — Sun, 02 Mar 2025 14:10:04 GMT

Q. Turbo Tax says he doesn't qualify; no one claims him, why doesn't he qualify??

A. He doesn't qualify because he is not legally obligated to pay the loan or the interest. This is because the loan is in YOUR name only .

And you can't claim it either, because "he is paying the loan".

For the family to get the deduction, you need to make the payments and take the interest deduction on Yiur tax return.