Student Loan Interest Deduction

[S T]

Taxpayer (parent) is a co-signor on a Student Loan for Son and has been making the payments. T/P (parent) will not claim the Son as a dependent. Can T/P as a co-signor claim the Student Loan Interest - AES issued the 1098-E in the son's name and SSN

Thanks

Sandy

[Roland Slugg]

If the son was a dependent when the loan was taken out (or would have been a dependent in the absence of a factor such as the dependent's filing of a joint return), then yes, the parents are eligible to deduct student loan interest they paid, up to the $2,500 limit. As is the case with other types of deductions and credits, the student loan interest deduction phases out above a certain AGI level.

The above is explained quite clearly right in the F-1040 instructions.