Article: 50073

Form 1098-E is used to report student loan interest that you have paid during the year. If you paid over $600 in interest, you could potentially deduct it on your taxes, which could reduce your taxable income.

Requirements

To take the deduction, the taxpayer/spouse must meet all the following requirements:

• Paid interest in a qualified student loan,
• Filing status is any status except Married Filing Separately,
• Legally obligated to pay interest on a qualified student loan,
• Not claimed as a dependent on another taxpayer’s tax return,
• Modified AGI is less than the threshold amount for that year.

Eligibility for the student loan interest deduction is based on your Modified Adjusted Gross Income (MAGI). This is a number you calculate when you fill out your tax return. Your deduction is reduced or eliminated at higher income brackets. As of the 2024 tax year:

• For single taxpayers, the deduction is reduced once you have $80,000 of modified AGI and eliminated at $95,000.
• For Married Filing Jointly taxpayers, the deduction is reduced to $165,000 of modified AGI and eliminated at $195,000.

For further information on the student loan interest deduction, refer to the Instructions for Forms 1098-E and 1098-T and Publication 970.

Data Entry

1. Go to Federal Taxes.
2. Click Review.
3. Click I’d like to see the forms I’ve filled out or search for a form.
4. Enter 1098E in the search box and add Student Loan Adjustment.
5. Enter your information and click Save.