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1098e i am cosignor on daughters student loan she defaulted and now I am legally responsible for the debt. can I claim the interest paid?

Forum|Forum|7 years ago
June 6, 2019
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The bank reported the default on my credit so I had no choice but to start paying the loan. If it is being reported on my credit, doesn't that make me legally responsible for the loan even if the 1098e is in my daughter's name?

TurboTax Self Employed Online

Best answer by Phillip1

Yes.

You can claim student loan interest as a deduction if all of the following applies:

From IRS Publication 970 (https://www.irs.gov/publications/p970/ch04.html#en_US_2016_publink1000178272)

Your filing status is any filing status except married filing separately.
No one else is claiming an exemption for you on his or her tax return.
You are legally obligated to pay interest on a qualified student loan.
You paid interest on a qualified student loan.

P

Phillip1Answer

Employee

Yes.

You can claim student loan interest as a deduction if all of the following applies:

From IRS Publication 970 (https://www.irs.gov/publications/p970/ch04.html#en_US_2016_publink1000178272)

Your filing status is any filing status except married filing separately.
No one else is claiming an exemption for you on his or her tax return.
You are legally obligated to pay interest on a qualified student loan.
You paid interest on a qualified student loan.

P

projoe6881Author

So to clarify, according to Turbo Tax, if my name is not on the 1098e form, I cannot claim the interest. My name is not, yet, as cosigner, I am legally obligated to pay back the loan, and have been. So there is a conflict as to when it is and when it is not deductible.