IRS is now accepting returns – Let a dedicated CPA handle your taxes!
Home › Tax Forms › Form 1098 E
Form 1098-E: How to Use Student Loan Interest Tax Form to Save Money
Tax Form Wizard
Find out which forms you'll need with this tax form recommender.
How would you describe yourself?
Choose as many as you like
Self-employed
Freelancer, independent contractor, etc
Salaried employee
Full-time or part-time W-2 employee
Business owner
LLC, S corp or partnership
Form 1098-E: How to Use Student Loan Interest Tax Form to Save Money
If you’ve made payments on your student loans, you might be eligible for a tax break. The IRS Form 1098-E reports the amount of interest you paid on your student loans during the tax year. This interest may be deductible, reducing your taxable income and potentially lowering your tax bill.
Table of contents
What is Form 1098-E?...Read more
Who Needs to File Form 1098-E?...Read more
How to File Form 1098-E...Read more
When is Form 1098-E Due?...Read more
Where to Find Form 1098-E...Read more
Common Mistakes When Filing Form 1098-E...Read more
How to Get Form 1098-E...Read more
What Happens If You Don’t Receive Form 1098-E?...Read more
Can You Deduct More Than $2,500?...Read more
Conclusion...Read more
What is Form 1098-E?
Form 1098-E, also known as the student loan interest tax form, is an IRS document that student loan servicers issue to borrowers who have paid at least $600 in interest during the tax year. The form shows the total interest paid, which can be used to claim the 1098-E tax deduction on your federal tax return.
If your total interest paid is less than $600, your servicer might not send you a 1098e, but you can still deduct the amount you paid. In this case, you may need to contact your loan servicer directly to find out how much interest you paid.
Who Needs to File Form 1098-E?
If you paid student loan interest and meet certain income requirements, you can use Form 1098-E to reduce your taxable income. However, not everyone qualifies for the deduction. Here are the key eligibility criteria:
- You must be legally required to make payments on the student loan.
- Your filing status cannot be Married Filing Separately.
- Neither you nor your spouse (if filing jointly) can be claimed as a dependent on someone else’s return.
- Your income must be below the set threshold for deduction eligibility.
How to File Form 1098-E
When you receive your 1098-e, you’ll need to enter the total student loan interest paid in the adjustments to income section of your tax return. If you’re using tax software, it will guide you through entering this information and calculating your deduction automatically.
For those filing manually, you will report your student loan interest deduction on Schedule 1 of Form 1040, line 21. You don’t need to attach Form 1098-E to your tax return, but keep it for your records in case the IRS requests it later.
When is Form 1098-E Due?
Your student loan servicer must send Form 1098-E by January 31st each year. If you don’t receive it by early February, check your loan servicer’s online portal, as many companies make the form available digitally. If you still can’t locate it, reach out to your servicer directly to request a copy or verify your mailing preferences to ensure you receive it in the future.
Where to Find Form 1098-E
If you’re wondering where to find 1098-E, you can check:
- Your loan servicer’s online account portal
- Physical mail (if you opted for paper delivery)
- Your email for notifications about digital forms
Common Mistakes When Filing Form 1098-E
Filing for a student loan interest deduction is straightforward, but people often make mistakes that could cost them money. Here are some common errors to avoid:
- Forgetting to check income limits – If your income is too high, you might not be eligible.
- Not claiming interest paid under $600 – Even if you don’t receive a 1098 e, you can still claim the deduction.
- Mismatching loan servicer records – Ensure that the interest amount you enter matches what your servicer reports.
Quick tip
If you’re eligible for the student loan interest deduction, you can reduce your taxable income by up to $2,500. This deduction is an adjustment to income, meaning you can claim it even if you don’t itemize deductions.
How to Get Form 1098-E
If you’re asking how to get 1098-E, the easiest way is to log into your loan servicer’s website and download it. If it’s not available, contact them directly and request a copy. Many servicers also send it via mail or email.
What Happens If You Don’t Receive Form 1098-E?
If you don’t get a form 1098-e, don’t panic. You can still deduct the interest paid by checking your loan statements or contacting your servicer. Many people assume they need the actual form to claim the deduction, but the IRS only requires accurate reporting of interest paid.
Can You Deduct More Than $2,500?
No, the maximum deduction for student loan interest is $2,500 per return, not per person. Even if you paid more than this amount, you can only deduct up to the limit. However, if you’re married and both spouses have student loans, you can each claim up to $2,500, provided your combined income doesn’t exceed the eligibility limit.
Conclusion
Understanding what is a 1098-E and how to use it can help you reduce your taxable income and save money. Even if your loan servicer doesn’t send you a 1098e, you can still claim the deduction by verifying the total interest paid.
Always check your loan servicer’s portal to download your form and avoid common mistakes when filing. If you’re unsure whether you qualify, tax software or a professional can help you determine your eligibility and maximize your refund.
What’s FlyFin?
FlyFin caters to the tax needs of freelancers, gig workers, independent contractors and sole proprietors.
But anyone can file taxes through FlyFin! FlyFin tracks all your business expenses automatically using A.I. technology.
Then, our CPA team files a guaranteed 100% accurate tax return for you – to save you a couple thousand dollars and a ton of time on your taxes.
In addition, you can download the FlyFin app and have your taxes filed in less than fifteen minutes, saving time and money.
Expert tax CPAs ensure 100%-accurate tax filing
A.I. finds every tax deduction, eliminating 95% of your work
On average users save $3,700
Was this tip useful?
Yes
No