Student Loan Interest Statement, Federal Form 1098 E

If you paid interest on a qualified student loan, you may be able to deduct it on your federal income tax return using IRS Form 1098-E. This form reports the amount of interest paid and is sent by loan servicers—companies collecting loan payments. Here's a breakdown of Form 1098-E:

Who Sends Form 1098-E?

• Loan Servicers: Companies handling loan payments issue Form 1098-E.
• Minimum Interest Requirement: Servicers must send the form to anyone paying at least $600 in student loan interest.
• Issuance Deadline: Generally sent by the end of January.
• Multiple Servicers: If you have loans with more than one servicer, you may receive multiple 1098-E forms.

What If You Don’t Receive the Form?

• Low Interest Payments: If interest paid is below $600, you might not receive the form.
• Contact Servicer: In such cases, contact your loan servicer to determine the interest paid.
• Online Access: Check your servicer’s website or statements for information. Online accounts may allow downloading the interest statement.

How to Use Form 1098-E?

• Deduction Limit: Deduct up to $2,500 of student loan interest from taxable income.
• Conditions for Deduction:
  • The interest is your legal obligation to pay.
  • Filing status is not married filing separately.
  • You or your spouse (for joint filers) isn't claimed as a dependent.
  • Income is below the annual limit.

Income Limits for Deduction

• Single Taxpayers:

  • Deduction reduced at $75,000 of modified AGI.
  • Eliminated at $90,000.

• Married Taxpayers:

  • Deduction reduced at $155,000 of modified AGI.
  • Eliminated at $185,000.