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June 29, 2020
Question

If my Dads name is on the 1098-E form since it was a parent plus loan but I am no longer dependent & I have been making payments for all of 2019. Can I still claim this?

  • June 29, 2020
  • 2 replies
  • 0 views
Do I need to get the name changed to mine on the form? Will it work just putting his name in, as is?

2 replies

rjs
Employee
June 29, 2020

You cannot claim a deduction for the interest on the Parent Plus loan because you are not legally obligated to pay it. Your father can claim a deduction for the interest, even though you paid it. It's treated as if you gave him the money and he used it to make the loan payments. Your father can claim the deduction because he is legally obligated to pay the interest, and you were his dependent when he took out the loan. It doesn't matter whether you are his dependent now.

 

June 29, 2020

In your case, you cannot claim the student loan interest deduction as you are not legally obligated to pay the loan (even if you did make the payments). To be able to claim the deduction, the loan (and the form 1098-E) must be in your name.

 

Please read this IRS publication for more information.

 

 

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