topic How do I apply a 1098T on a" parent plus loan" ? I pay but child is no longer a dependent? I cannot transfer loan to their name and they cannot claim expense either, in Education

How do I apply a 1098T on a" parent plus loan" ? I pay but child is no longer a dependent? I cannot transfer loan to their name and they cannot claim expense either,

lisabrettk — Sat, 01 Jun 2019 17:43:17 GMT

We have a parent plus school loan for my 22 year old daughter. I get a 1098T each year and for the next 10 years. She is no longer a dependent. Who gets to claim it as a deduction?

Re: How do I apply a 1098T on a" parent plus loan" ? I pay but child is no longer a dependent? I cannot transfer loan to their name and they cannot claim expense either,

Carl — Tue, 18 Jun 2019 13:20:14 GMT

The 1098-T has nothing what-so-ever to do with any loan. Did you mean 1098-E par chance? If so, the person named on the 1098-E can claim the interest. Since your daughter is not listed as a borrower or co-borrower on the loan she has no legal obligation to pay the loan. So she can't claim it. But consider this:

Since your interest payment is an itemized deduction on SCH A it may not make any difference at all. Remember, until the total of all itemized deductions on SCH A exceed your standard deduction, those itemized deductions make no difference in your tax liability. For 2018 the standard deduction is:

Single or MFS $12,000

MFJ - $24,000

Re: How do I apply a 1098T on a" parent plus loan" ? I pay but child is no longer a dependent? I cannot transfer loan to their name and they cannot claim expense either,

Texas Roger — Tue, 18 Jun 2019 13:56:58 GMT

Student loan interest is not an itemized deduction. It is an adjustment to income. Up to $2500 of interest can be entered on line 33 of Schedule 1 on the 2018 tax return. It directly reduces the amount of income that is taxable.