What is a 1098-E Form? – Student Loan Interest Statement

 

Question: What is a 1098-E Form?  

Answer: If you are paying off your student loans, you’ll probably need to use Form 1098-E while completing your taxes.

If you made student loan payments, you may be eligible to deduct a portion of the interest paid on your federal tax return. The student loan interest paid is reported to you by your loan servicers using Form 1098-E, Student Loan Interest Statement.

How to Obtain a 1098-E Form

Your student loan servicer (who you make payments to) will provide a copy of your 1098-E of the interest paid in a tax year. Anything exceeding $600 of student loan interest will be reported on the form.

The IRS will also get a copy of the form from the loan servicer.

Can You Get More than One Form 1098-E?

If you are a student with multiple loan servicers, you will receive a separate 1098-E from each loan servicer.

How Will You Receive a 1098-E Form?

You will be sent the form from your loan servicer electronically or via U.S. Postal Service.

What If You Don’t Receive IRS Form 1098-E?

If you don’t receive a form, contact your loan servicer directly. You can find the phone number on your loan statements sent by the servicer or online.

How Should You Use It?

Use the 1098-E Form to figure your student loan interest deduction. You can deduct up to $2,500 worth of student loan interest from your taxable income if you meet the following requirements:

  • You are legally obligated to pay interest on the student loans
  • The interest was paid by you
  •  You are not filing your taxes as married filing separately
  • You cannot be claimed as a dependent on anyone else’s tax return
  • Your income is below the annual limit

A former student can still take this deduction even if the actual student loan payment was made by either a nonprofit where the individual works or a parent.

In one instance the money was treated like wages and in the second it was treated like a gift to the former student. In both cases the former student got to claim the deduction.

Can Anyone Claim the Student Loan Interest Deduction?

Your eligibility to claim a student loan deduction using 1098-E form is based on your modified adjusted gross income. This deduction is reduced or eliminated at higher income brackets. Here are the recent numbers for 2019:

  • If your filing status is single, head of household, or qualifying widow(er), the deduction is reduced once you have $70,000 of modified AGI and eliminated at $85,000
    • If your filing status is married filing a joint return, the deduction is reduced at $140,000 of modified AGI and eliminated at $170,000

Have 1098-E Tax Forms Questions?

A Form 1098-E has valuable information that you may be able to use to claim student loan interest deductions.

If you need assistance, we are here to help. Whether you make an appointment with one of our knowledgeable tax pros or choose one of our software or online tax filing products, you can count on H&R Block to help you get back the most money possible.

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