Zero Income and Received a 1098-E Form

[BillMoIV]

My son is in his masters program and had zero income in 2023.  He received a 1098-E form with $2,200 in box 1.  The form is tied to his SSN, although I (parent) paid on his student loans in 2023.  I list him as a dependent on my taxes.  Can/should he file with zero income and include his 1098-E?  If he can receive a refund due to this interest paid, I would him to file his taxes.  Since I paid on his students loans, do I include it on my taxes?

[KrisD15]

The deduction for student loan interest would only lower tax liability, it would not be a refund. If the student has no income and doesn't need to file, the 1098-E would have no relevance for the student.

If you you co-signed the loan and are therefore regally obligated to pay the loan, and you did make the payments and the student is your dependent, you can claim the interest on your return. 

If the loan is only in the name of the student, only the student can claim the interest they paid. 

According to the IRS page 34:

Generally, you can claim the deduction if all of the following requirements are met. 

• Your filing status is any filing status except married filing separately.
• No one else is claiming you as a dependent on their tax return. 
• You are legally obligated to pay interest on a qualified student loan. 
• You paid interest on a qualified student loan

[Hal_Al]

Q.  Can/should he file with zero income and include his 1098-E?

A. No. There is nothing to gain by doing so.

Q.  Since I paid on his students loans, do I include it on my taxes?

A.  Yes, but only if you are legally obligated to pay it (typically, you co-signed the loan).