Nominee or Split Student loan interest from 1098-E

jskouberdis

Hello community I know we are all tired and need a break. It's coming soon.

I have a question that I have researched and have not been able to find an answer to. If a student took out a student loan and is making payments and the parents are guaranteeing the loan I know that either one can take on their returns as a deduction. But can they split the amount by putting the whole amount on one return and showing less amount belonging to the other with their ss#. The total amount is $2000 and I was thinking if I can do it to take $1000 on each return.

Let me know if anybody has done this and if it is allowed.

Thank you in advance,

John Skouberdis

Terry53029

Don't think you can split it. the student loan interest deduction is tied to the actual borrower and payer of the interest, not the guarantor. If the student is paying the interest, they can claim the deduction, even if the parents are guaranteeing the loan.

jskouberdis

Terry 53029,

As long as there is a legal obligation to pay the co-signers on the loan can take the deduction as long as they are obligated to pay. My question was can you split the student loan interest amount if both the student and the parents are co-signers.

John

Terry53029

Only one is a cosigner, and they are not legally obligated unless borrower defaults. only the person on the 1098 E is obligated to repay. You cannot split

jskouberdis

Terry,

How about the situation where the student was paying on the loan for the first half of the year and did not have the funds to continue paying and the parents who are the co-signers paid for the last half of the year. It would seem fair to allow them to each take one half of the total interest since they both paid. And with that in mind would I put the total 1098-E on the student's return and then nominee out the portion that the parents paid.

John