Can i deduct student loan interest if i am cosigner?

Forum|Forum|6 years ago
June 7, 2019
1 reply
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My daughter is no longer a student, but has not been working and is still a dependent. Her name is on the loan, but I am the co-signer and have been making all of the payments

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Best answer by JaimeG

Yes, a parent who cosigned student loans may claim the student loan interest deduction. To claim the student loan interest deduction, the borrower must be legally obligated to make the payments on the student loans and the Student must be a dependent of the Cosigner. Cosigning the loans counts as legally obligated to make the payments.

For more information please visit the FAQ below:

https://ttlc.intuit.com/replies/3302319

JaimeGAnswer

Employee

For more information please visit the FAQ below:

https://ttlc.intuit.com/replies/3302319

i0402do

But if the child is no longer a dependent can the parent still deduct the interest on a student loan they co-signed for?

xmasbaby0

Employee

@i0402do

If you are a co-signer and YOU are making the payments then you can take the deduction. It has nothing to do with claiming your child as a dependent.

STUDENT LOAN INTEREST

Only the person whose name is on the student loan and who is legally obligated to pay the loan can deduct the student loan interest. If you did not sign or co-sign for the loan you cannot deduct the interest.

You cannot deduct student loan interest if you are being claimed as someone else’s dependent, or if you are filing as married filing separately.

The student loan interest deduction can reduce your taxable income by up to $2500

There is a phaseout for the Student loan interest deduction, which means the amount you can deduct gets reduced when your modified adjusted gross income hits certain income levels and is even eliminated at certain income levels -

• If your filing status is single, head of household, or qualifying widow(er), then the phaseout begins at $65,000 until $80,000, after which the deduction is eliminated entirely.

• If your filing status is married filing joint, then the phaseout beings at $130,000 until $160,000, after which the deduction is eliminated entirely.

Enter the interest you paid for your student loan by going to Federal>Deductions and Credits>Education>Student Loan Interest Paid in 2018 (Form 1098E)

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**