Form 1098-E: Student Loan Interest Statement
Report student loan interest of $600 or more received during the year.
Filing Deadline
January 31 (to borrower) / February 28 (paper) or March 31 (e-file) to IRS
Threshold
$600 or more in student loan interest
Deduction
Up to $2,500 may be deductible by borrower
Overview
Form 1098-E is used by student loan servicers and lenders to report student loan interest of $600 or more received during the year. This helps borrowers claim the student loan interest deduction.
The student loan interest deduction allows eligible borrowers to deduct up to $2,500 of qualified student loan interest, subject to income limitations.
Who Must File
Required Filers
- •Financial institutions receiving student loan interest
- •Educational institutions receiving loan interest
- •Student loan servicers
- •Received $600 or more in interest from a single borrower
- •Loan was for qualified higher education expenses
Exceptions & Notes
- ✕Not required if less than $600 in interest received
- ✕Not required for loans made by related persons or employers
Form Structure & Instructions
Here's what information is required in each section:
Interest Information
Student loan interest received
Important Filing Notes
Income Limitations Apply
The student loan interest deduction is phased out for higher income taxpayers. For 2024, phase-out begins at $80,000 ($165,000 married filing jointly) and is eliminated at $95,000 ($195,000 MFJ).
Qualified Student Loan
Loan must have been taken out solely to pay qualified higher education expenses (tuition, fees, room, board, books, supplies, equipment) for taxpayer, spouse, or dependent.
No Deduction if MFS or Dependent
Cannot claim deduction if filing status is Married Filing Separately or if taxpayer can be claimed as a dependent on someone else's return.
Above-the-Line Deduction
Student loan interest is an adjustment to income (above-the-line deduction), so you can claim it even if you don't itemize deductions. Maximum deduction is $2,500.
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