As a cosigner of dependent child's student loans now in repayment, since we made payments when they couldn't, can we take interest deduction though 1098-e in their name?

Forum|Forum|1 year ago
February 23, 2025
2 replies
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IF not, is it a gift and would we get deductions since it was for education?

MinhT1

If you made the loan payments and were a co-signer, you can take the student loan interest deduction on form 1098-E.

Please read this IRS document for more information.

Student loan repayments cannot be counted as education expenses for the education credits.

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Hal_Al

Employee

You can claim the interest deduction, if you meet the three requirements:

You paid the interest
You are legally obligated to pay it (co-signing counts)
The student was your dependent, at the time the loan was used to pay for qualified educational expenses (the TT pop up says “when you took out the loan”)

runpastorrun

Follow up question on this: How, then, do we get the tool to accept our entry when the 1098-E is not in my name but my son's? The tool doesn't ask the 3 qualifying questions you mentioned to allow the 1098-E to be submitted. The tool (in Forms View) drills you down to a Student Loan Interest Deduction Worksheet, but it is only for the Taxpayer or Spouse (since we're married filing jointly). I can fill in the Lender's name but it will ask for my social. I don't recall if, as a cosigner, the lender has my social as well.

Any tips for how to get the information included through the tool?

Hal_Al

Employee

I assume "tool" means the TurboTax (TT) program. You enter the interest paid by treating the 1099-E as your own. TT does not ask for your SS#. Lying to TurboTax to get it to do what you want does not constitute lying to the IRS. The 1099-E is only an entry tool. There is nowhere on the forms to tell TT or the IRS that you are just a co-signer. You handle that if you get an IRS inquiry. That's unlikely. This is a common situation.