billr617
Level 3

Client has 2 dependents in college. Dependents have loans that parent cosigned. Parent paid interest on loans. Interest is reported under dependent ss number. As I read IRS instructions parents are entitled to deduct interest as they paid it, cosigned loans and students are still dependents.

When I enter info on student loan worksheet and choose "someone else" instead of taxpayer or spouse, the amount I entered for interest disappears.

Any ideas of a work around or am I doing something wrong. Thanks!

 

0 Cheers
dascpa
Level 11

Agreed on your post.  I just chose the taxpayer as the recipient and let it fly.  If questioned, we have the 1098-E and the child is listed as a dependent.