Does this mean that no one can claim the loan interest deduction?

[SaraTShelby]

My daughter is a dependent on my return  I made a student loan pmt for her. Now turbotax says that I can't deduct the interest because my name is not on the loan. When I try to put the 1098E in her return it says it can't be done bc someone else is claiming her as a dependent.

Am I to understand that we can't deduct the interest at all?

[MargaretL · Accepted solution]

You are correct - no one is able to claim it.

• If the debt is in your name, you can claim the deduction if you paid it.
• If it's in the child's name, but you paid it for them, they can claim the interest as long as the conditions below are met (being claimed as a dependent is not met in your situation).
• If child's name is on the student loan and  parent pays it AND claims the child as a dependent, then NEITHER of you can claim the student loan interest deduction.

  You can only deduct student loan interest if all of the following apply:

• You paid interest on a qualified student loan in tax year 2015
• You are legally obligated to pay interest on a qualified student loan
• Your filing status is not married filing separately
• Your MAGI is less than a specified amount which is set annually, and
• You or your spouse, if filing jointly, cannot be claimed as dependents on someone else's return