So if I pay interest on my child's student loan I can't take it on my taxes?

Forum|Forum|6 years ago
June 6, 2019
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TurboTax Deluxe Online

Best answer by HollyP

Yes, unfortunately, if the child is not a dependent on your tax return, then you cannot claim the student loan interest that you paid.

If the child is a dependent on your tax return, you must also be legally obligated to pay the loan in order to deduct it. So, if the loan is in your child's name, then you can't deduct the interest even if the child is your dependent.

The only way you can report student loan interest as a parent is if you are claiming the child as a dependent and you are legally responsible for the loan, meaning that you are the signer or co-signer.

HollyPAnswer

Employee

Yes, unfortunately, if the child is not a dependent on your tax return, then you cannot claim the student loan interest that you paid.

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jddoylesAuthor

Thank you!

jmbrooks100

Continuing on this topic. I have two daughters, both are dependents on my tax return. They go to a private high school and I needed to take a loan out for the tuition. The loan is in my name. Would this qualify as a deduction for the interest expense for me?

macuser_22

Employee

@jmbrooks100 wrote:

Continuing on this topic. I have two daughters, both are dependents on my tax return. They go to a private high school and I needed to take a loan out for the tuition. The loan is in my name. Would this qualify as a deduction for the interest expense for me?

No. That applies only to higher (college level) education.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**

ThomasM125

You need to answer the questions in TurboTax truthfully in order to adhere to their accuracy guarantee and to insure that your tax return is completed accuratly. When asked for the name on the 1098-T, you should enter the name as it is stated there.

If you look on the screen in TurboTax where you enter the interest, you will see questions highlighted in blue that say What if I paid Interest for someone else? When you click on that box, you will see this explanation that indicates that TurboTax will not guarantee the allowability of the deduction unless the loan is in your name: @AR1806

@AR1806 {edited 2/12/23 at 7:28 AM PST)