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How to complete IRS Form 1098-E

IRS Form 1098-E is used by financial, government or educational institutions to report receipt of student loan interest of $600 or more during the year or one or more qualified student loans.

Qualified student loan.

A student loan must be either:

  • Subsidized, guaranteed, financed, or otherwise treated as a student loan under a program of the Federal, state, or local government, or of a postsecondary educational institution, or
  • Certified by the borrower as a student loan incurred solely to pay qualified higher education expenses.

Form 1098-E.

The top part of the form shows lender name, address and TIN followed by the borrower name, address and social security number.

Account number.  This is just a unique number that the lender uses to identify or distinquish this borrower.

Box 1. Shows the interest received by the lender during the year on one more more student loans made to this student.

If the loan is made on or after September 1, 2004, Box 1 must incldue loan origination fees and capitalized interest received.

If the loan is made before September 1, 2004, you may be able to deduct loan origination fees and capitalized interest not reported in Box 1.

Box 2. If checked, indicates that the loan was made after September 1, 2004 and that loan origination fees and/or capitalized interest are not included in Box 1.

Copy B of IRS Form 1098-E is sent to the borrower or student by the end of January.  You can print and mail Copy B, e-mail, fax or just print and hand Copy B to the student.  Copy A must be paper filed along with Form 1096 to the IRS by the end of February.  Or the lender can electronically file Copy A  by the end of March.

Why didn’t I receive a Form 1098-E?

The most common reasons as to why a student would not receive Form 1098-E are:

  • Your interest payments for the tax year did not total $600 or more. Your loan servicer is required to issue a 1098-E only if the interest payments on your loan met or exceeded this threshold.
  • Your 1098-E was mailed to the wrong address. If you did not have a current address on file with your loan servicer, then your form may have gone astray.
  • You did not have a valid Social Security Number on file with your loan servicer.Without a valid SSN, Form 1098-E could not be generated for you.
  • Your payments were not received within the “covered period” for your loan. Payees are required to report only those interest payments received within the first 60 months that your loan is in repayment, excluding periods of grace, deferment, and forbearance.
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Erich J. Ruth

Erich J. Ruth provides technical support for National Software which is the parent company for 1099FIRE. 1099FIRE develops and markets a comprehensive range of products that enables any size of business or institution to effectively manage and comply with year-end filing requirements. 1099FIRE is an employee-owned company located in Phoenix, Arizona.

If you have any questions or comments about our software, feel free to contact us at any time.

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