Form 1098-E (Student Loan Interest Statement)

1. Form 1098-E: Student Loan Interest Statement

Form 1098-E is provided by the entity servicing the taxpayer’s student loan if $600 or more in interest was paid during the year. This form allows taxpayers to claim a deduction for student loan interest, potentially reducing taxable income and overall tax liability.

2. Steps to Enter Form 1098-E Information

• Review/Print

  • From the left side of the main tax return page, select Review/Print. This will expand the dropdown menu of all tax return review screens.
    
    

    Open

    

• Schedule 1

  • Select the Schedule 1 tab. This will open the Additional Income and Adjustments to Income form.

• Part II - Adjustments to Income

  • On Schedule 1, scroll down to Part II, Line 21 (Student Loan Interest Deduction).

  • Click the menu icon to open the worksheet.

• Student Loan Interest Deduction Worksheet

  • Enter the total interest paid during the year (as shown on Form 1098-E) in Line 1.

Open

3. Important Notes

• Income Limits for Deduction:

  • For Single filing status:

    • Deduction is reduced at $75,000 AGI.

    • Deduction is eliminated at $90,000 AGI.

  • For Married Filing Jointly:

    • Deduction is reduced at $155,000 AGI.

    • Deduction is eliminated at $185,000 AGI.

  • This deduction is not available if the filing status is Married Filing Separately or if claimed as a dependent on someone else’s return.