My 27 year old daughter has numerous student loans, some of which are solely in her name, some I am the co-borrower on and one in my name. She was a dependent at the time the loans were made. Can we both take the interest deduction as long as we don't take it on the same interest? Are we limited to a total of $2500.00 between the two of us?
student loan interest
Jan 27, 2010
1 Replies
The rules as to who can take a deduction are as follows (source is Pub 970):
Generally, you can claim the deduction if all of the following requirements are met. ? Your filing status is any filing status except married filing separately. ? No one else is claiming an exemption for you on his or her tax return. ? You are legally obligated to pay interest on a qualified student loan. ? You paid interest on a qualified student loan.
Therefore, as long as your daughter is not your dependent and she pays interest on any loan that is in her name or both names, she could take a deduction up to $2500. If you pay interest on a loan that is in your name or both names, you can take a deduction up to $2500.
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