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Level 2
March 15, 2021
Question

Student Loan Interest

  • March 15, 2021
  • 6 replies
  • 52 views

 

I am attempting to enter 1098-E info. for my dependent daughter on my married/joint tax return. 

I have cosigned for the loan, am legally obligated to pay and I have in fact paid it.  The IRS rules state that I am therefore eligible to deduct the loan interest.

The 1098-E has her name and social security # on it, not mine. The software does not allow me to enter the loan interest paid unless I state that the 1098-E is in my name with my SS # which it does not.  

Does anyone have a solution?

 

 

 

This topic has been closed for replies.

6 replies

BobKamman
Level 15
March 15, 2021

Hi there,

You’ve come to an Intuit site supporting tax professionals, and you may be looking for support as an individual taxpayer. Please visit the TurboTax Help site for support.

Cheers!

PATAX
Level 12
March 15, 2021

God bless you Bob... Why do they keep coming to this forum?...just my opinion....

Level 7
March 15, 2021

If you your name does not appear in the loan, there is no way you can deduct it even if you cosigned it. It has to be the name of either you or your spouse, not your daughter even if it is your dependent. Sorry. 

 

SeatreespAuthor
Level 2
March 16, 2021

 

Thank you for your response to my question.  

Since Intuit software does not allow me to input Form-E information indicating that the borrower is my dependent and also lists her SS#, no avenue is provided to take this student loan interest deduction.

 

That said, I believe the problem is with the software not the legitimacy of the deduction.  IRS Publication 970 states that:

Student loan interest paid on a qualified student loan includes both required and voluntarily pre-paid interest payments.  You can claim Student loan interest deduction if all of the following apply:

  • You paid interest on a qualified student loan in tax year 2020;
  • You're legally obligated to pay interest on a qualified student loan;
  • Your filing status isn't married filing separately;
  • Your MAGI is less than a specified amount which is set annually; and
  • Neither you nor your spouse, if filing jointly, can be claimed as dependents on someone else's return.

We meet all of these conditions.

Originators of Form 1098’s usually list only one responsible party on mortgage interest statements even if others can take the deduction and are equally obligated to pay. 

I believe the same principal applies to the 1098-E we received.  Hopefully, Intuit will take a closer look at this.

qbteachmt
Level 15
March 16, 2021

@Seatreesp 

"Since Intuit software does not allow me to input Form-"

Yes, but which specific program are you using?

Because this is a forum for using ProSeries to prepare clients' tax returns.

Are you using TurboTax?

No one here can help with TurboTax issues.

Don't yell at us; we're volunteers