All of the following must be true of the loan and your tax filing status for the interest to be considered deductible: No one else can claim you—or your spouse, if you’re married—as a dependent on their tax return. You are legally obligated to pay the interest on the student loan.

Can a parent claim student loan interest for a dependent?

Generally, you can deduct interest only if you are legally required to repay the debt. But if parents pay back a child’s student loans, the IRS treats the transactions as if the money were given to the child, who then paid the debt.

Can both spouses claim student loan interest deduction?

In order to qualify for the student loan interest deduction, there are a few criteria you need to meet. You can claim the deduction if your filing status is single, head of household, married filing jointly, or qualifying widow(er). You cannot claim the deduction if you are married but filing separately.

Can I claim student loan interest if the loan is in my parents name?

If your parents are required to pay the loan interest or they claim you as their dependent, you can’t claim the deduction. But if your loans are in your name and you are not a dependent, you can deduct the interest on your tax return. This applies even if your parents paid them for you.

Can you deduct interest on a student loan if you are a cosigner?

If you are a co-signer and YOU are making the payments then you can take the deduction. It has nothing to do with claiming your child as a dependent. Only the person whose name is on the student loan and who is legally obligated to pay the loan can deduct the student loan interest.

Can a parent claim the student loan interest deduction?

Yes, a parent who cosigned student loans may claim the student loan interest deduction. To claim the student loan interest deduction, the borrower must be legally obligated to make the payments on the student loans and the Student must be a dependent of the Cosigner. Cosigning the loans counts as legally obligated to make the payments.

Can a cosigner of a student loan send a 1098-E?

Generally, the lender will send IRS Form 1098-E, Student Loan Interest Statement, only to the student borrower, not the cosigner. Payments by a third party, including the cosigner, are normally treated as though they were a gift to the borrower who then made the payments.

Can a grandparent co-signer on a student loan?

So, is the grandparent a co-signer, who is liable if the student defaults, or is the grandparent liable to pay the loan regardless (are they “jointly and severally liable”)? If it’s actually the former — which means that the grandparent has no current obligation to pay — then he/she cannot deduct the interest.