My husband and I claim my son as a dependent on our tax return and my husband is also a cosigner on my son's student loan. Therefore, from what I've read, my husband should be able to claim the interest o our tax return. The problem is that the1098E is only in my son's name. The loan company will only enter the primary borrower's name on the 1098E and not to the cosigner's name.
On the tax program where it wants you to choose who the 1098E belongs to, it shows you a drop down menu of the names that you can choose from. Unfortunately, my son's name is not on the drop down menu. It only shows mine and my husband's name to choose from. How then is a cosigner able to claim the deduction? Should we choose my husband's name even though it's my son's name that is on the 1098E?
If your husband is a co-signer on the loan he can deduct the interest, if your income is below the limit. Student loan interest is deductible if your modified adjusted gross income (MAGI) was less than $80,000 (for single filers) or $165,000 (if filing jointly). If your MAGI was between $80,000 and $95,000 (for single filers) or $195,000 (if filing jointly), you can deduct less than than the maximum $2,500.
The fact that the Form 1098-E names your son and not your husband will not be a problem. Just select your husband from the dropdown menu when entering it.