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

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

Question: What is a 1098-E Form?  

Answer: If you might be paying off your student loans, you’ll in all probability want to make use of Form 1098-E whereas finishing your taxes.

If you made student loan funds, chances are you’ll be eligible to deduct a portion of the curiosity paid in your federal tax return. The student loan curiosity paid is reported to you by your loan servicers utilizing Form 1098-E, Student Loan Interest Statement.

Have different student tax submitting questions?  Be positive to go to our Tax Guide for College Students and discover out about student types that may be filed totally free.  

How to Obtain a 1098-E Form

Your student loan servicer (who you make funds to) will present a replica of your 1098-E of the curiosity paid in a tax 12 months. Anything exceeding $600 of student loan curiosity can be reported on the shape.

The IRS may even get a replica of the shape from the loan servicer.

Can You Get More than One Form 1098-E?

If you’re a student with a number of loan servicers, you’ll obtain a separate 1098-E from every loan servicer.

How Will You Receive a 1098-E Form?

You can be despatched the shape out of your loan servicer electronically or through U.S. Postal Service.

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

If you don’t obtain a type, contact your loan servicer instantly. You can discover the cellphone quantity in your loan statements despatched by the servicer or on-line.

How Should You Use It?

Use the 1098-E Form to determine your student loan curiosity deduction. You can deduct as much as $2,500 value of student loan curiosity out of your taxable earnings in the event you meet the next necessities:

  • You are legally obligated to pay curiosity on the student loans
  • The curiosity was paid by you
  •  You aren’t submitting your taxes as married submitting individually
  • You can’t be claimed as a depending on anybody else’s tax return
  • Your earnings is beneath the annual restrict
READ:   How to Pay Off $100k in Student Loans: 5 Strategies to Consider

A former student can nonetheless take this deduction even when the precise student loan fee was made by both a nonprofit the place the person works or a dad or mum.

In one occasion the cash was handled like wages and within the second it was handled like a present to the previous student. In each circumstances the previous student bought to assert the deduction.

Can Anyone Claim the Student Loan Interest Deduction?

Your eligibility to assert a student loan deduction utilizing 1098-E type is predicated in your modified adjusted gross earnings. This deduction is diminished or eradicated at increased earnings brackets. Here are the current numbers for 2019:

  • If your submitting standing is single, head of family, or qualifying widow(er), the deduction is diminished after getting $70,000 of modified AGI and eradicated at $85,000
    • If your submitting standing is married submitting a joint return, the deduction is diminished at $140,000 of modified AGI and eradicated at $170,000

Have 1098-E Tax Forms Questions?

A Form 1098-E has useful data that you simply might be able to use to assert student loan curiosity deductions.

If you want help, we’re right here to assist. Whether you make an appointment with one in all our educated tax professionals or select one in all our software program or on-line tax submitting merchandise, you possibly can rely on H&R Block that can assist you get again essentially the most cash attainable.

You can file Form 1098-E totally free utilizing H&R Block Free Online. 

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