Student Loan interest deduction

Forum|Forum|6 years ago
February 19, 2020
3 replies
75 views

If your dependent receives a student loan interest statement in their social security number and you the taxpayer have helped pay this can this be deducted on the Taxpayers return? If so, how do you enter this in ProSeries Basic as you have to enter the taxpayer or spouse social security number. It won't allow the dependents social security number on the worksheet.

ProSeries Basic

This topic has been closed for replies.

T

Terry53029

Intuit Community Champion

Only the student can take the interest if their SS number is on the 1098-E

rbynaker

Level 13

1098-E forms only allow one SSN. It is legally possible that more than one individual is obligated to pay off the loan and that would not be reflected on the 1098-E. If TP can produce a legal document showing that they are liable then they are entitled to the deduction. I don't see this a lot but it's hypothetically possible.

See 1.121-1(b)(1) regs:

https://www.law.cornell.edu/cfr/text/26/1.221-1

"(1) Taxpayer must have a legal obligation to make interest payments. A taxpayer is entitled to a deduction under section 221 only if the taxpayer has a legal obligation to make interest payments under the terms of the qualified education loan."

In reality I agree with Terry, but I'll open the door for you just a crack in case you can fit through.

Rick

K

KMMAuthor

Level 2

Rick,

I get what you're saying here and taxpayer can support this, but how do you enter this in ProSeries Basic?

ProSeries will not allow any other social security number other than the taxpayer or spouse. 1095-E has dependents social security number.

Thank for your help!

Sign up

Login with SSO

Let's get you signed in

Login with SSO