Form 1098-E: Student Loan Interest Statement

Form 1098-E is generally used to report certain student loan interest received during the year and provide information that may be relevant to a taxpayer's federal tax return.

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Introduction

Form 1098-E, Student Loan Interest Statement, is generally used by certain lenders or loan servicers to report qualifying student loan interest received during the year. The statement provides information that may be used by borrowers when preparing their federal income tax returns.

A borrower who receives Form 1098-E should review the information and keep the statement with their tax records. Whether the reported student loan interest affects a taxpayer’s federal tax return depends on the taxpayer’s individual circumstances and applicable tax rules.

What Is Form 1098-E?

Form 1098-E is an information statement used to report certain student loan interest received during the year. It generally provides the borrower with information about the amount of qualifying interest paid on a student loan.

Form 1098-E is generally prepared by the lender or loan servicer rather than by the borrower. The borrower may use the information when determining whether student loan interest is relevant to their federal income tax return.

Who Uses Form 1098-E?

Form 1098-E may be used by certain lenders, loan servicers, and other applicable organizations that receive qualifying student loan interest. Borrowers who meet the applicable reporting requirements may receive the statement.

Not every student loan borrower will receive Form 1098-E. Whether a statement is provided can depend on the amount of interest paid and other applicable reporting requirements.

What Information Is Needed?

The information on Form 1098-E generally includes the borrower’s identifying information, the lender or loan servicer’s information, and the amount of student loan interest received during the year.

Borrowers should compare the amount shown on Form 1098-E with their own student loan statements and payment records. Keeping these records can help verify the reported amount and support information used when preparing a federal income tax return.

How to Fill Out/Complete Form 1098-E

Form 1098-E is generally completed by the lender or loan servicer rather than by the borrower. The statement is prepared using the applicable student loan account and payment records.

Borrowers who receive Form 1098-E generally use the information provided on the statement when preparing their tax return. Both the issuer and borrower should review the information for basic accuracy and address apparent errors with the appropriate party.

Section 1

Enter the lender or loan servicer’s identifying information and the borrower’s information as requested. This information generally identifies the parties associated with the student loan.

Review names, addresses, and other identifying information carefully. Accurate information can help ensure that the statement is associated with the correct borrower and loan account.

Section 2

Enter the applicable amount of student loan interest received during the reporting period. The amount should generally be based on the lender or loan servicer’s records.

Review the reported amount against available student loan statements and payment records. Borrowers should retain supporting documentation with their other tax records.

Section 3

Complete any additional information requested on Form 1098-E that applies to the reporting situation. The information required may depend on the loan and the applicable reporting requirements.

Review the applicable fields carefully and provide accurate information based on the loan records. Not every field or situation will apply to every borrower.

Final Review

Review Form 1098-E after all applicable information has been entered. Check the borrower’s information, lender or servicer information, student loan interest amount, and any other applicable details.

A final review can help identify simple reporting errors before the statement is furnished or used to prepare a tax return. Borrowers should retain Form 1098-E with their student loan and tax records.

Common Mistakes

Common mistakes involving Form 1098-E may include reporting an incorrect student loan interest amount, entering incorrect identifying information, or overlooking the statement when preparing a federal income tax return.

Another common mistake is assuming that every amount shown on Form 1098-E automatically results in a tax benefit. Whether student loan interest can be deducted depends on the taxpayer’s circumstances and applicable tax rules.

Related IRS Forms

Form 1098-E may be associated with Form 1040 and other federal tax forms and schedules used when reporting income and deductions. Information from Form 1098-E may be relevant when determining whether a taxpayer can claim an applicable student loan interest deduction.

Other tax forms may apply depending on the taxpayer’s income, filing status, education expenses, and other circumstances. The specific forms required will vary from one taxpayer to another.

Where to File or Submit

Form 1098-E is generally prepared by the lender or loan servicer and furnished to the borrower when applicable. The borrower generally does not submit Form 1098-E as a separate federal tax return.

When applicable, the borrower uses the information from Form 1098-E when preparing their federal income tax return. The borrower should retain the statement with their student loan and tax records.

Current IRS Form & Instructions

Tax forms and instructions may change over time. Lenders, loan servicers, and borrowers should use the version of Form 1098-E that applies to the applicable reporting period and tax year.

The information on this page is intentionally general so it can remain useful across multiple tax years. Before preparing or using Form 1098-E, users should review the applicable version of the form and its instructions because reporting requirements, deduction rules, and other tax procedures may change.

Important Information / Disclaimer

This page is provided for general informational and educational purposes and offers a basic overview of Form 1098-E. It is not intended to provide individualized tax, legal, accounting, student loan, or financial advice and should not be considered a substitute for professional guidance.

Federal tax laws, forms, student loan interest rules, information reporting requirements, and filing procedures may change over time. Information that applies to one taxpayer, borrower, lender, or tax year may not apply to another, so users should consider their individual circumstances and seek assistance from a qualified tax professional when appropriate.