IRS Instruction 1098-E and 1098-T – In the world of tax preparation, education-related forms play a crucial role for students, borrowers, and institutions alike. IRS Forms 1098-E and 1098-T provide essential information for claiming deductions and credits, such as the student loan interest deduction and education tax credits like the American Opportunity Credit or Lifetime Learning Credit. This SEO-optimized guide breaks down the latest IRS instructions for Forms 1098-E (Student Loan Interest Statement) and 1098-T (Tuition Statement), drawing from official sources to help you navigate filing requirements, deadlines, and key updates for the 2025 tax year. Whether you’re a lender, educational institution, or taxpayer, understanding these forms can maximize your tax benefits and ensure compliance.
What Is IRS Form 1098-E?
Form 1098-E, known as the Student Loan Interest Statement, is used by lenders to report the amount of interest received on qualified student loans during the tax year. This form helps borrowers claim the student loan interest deduction on their federal tax return, potentially reducing taxable income by up to $2,500, subject to income limits and other eligibility rules.
Key details reported on Form 1098-E include:
- The total student loan interest received by the lender (Box 1).
- A checkbox (Box 2) indicating if loan origination fees or capitalized interest are not included in Box 1 for loans made before September 1, 2004.
Only interest of $600 or more per borrower must be reported, and it applies to qualified student loans—those subsidized, guaranteed, or otherwise treated as student loans under government or educational programs. Borrowers should receive a copy of this form by January 31, 2026, to use when filing their 2025 taxes.
What Is IRS Form 1098-T?
Form 1098-T, the Tuition Statement, is issued by eligible educational institutions to report payments received for qualified tuition and related expenses (QTRE). It also covers scholarships, grants, and adjustments, helping students or their parents claim education-related tax credits or deductions.
Important boxes on Form 1098-T include:
- Payments received for QTRE (Box 1).
- Scholarships or grants (Box 5).
- Adjustments for prior years (Boxes 4 and 6).
- Checkboxes for half-time or graduate student status (Boxes 8 and 9).
- A checkbox if payments relate to academic periods beginning in early 2026 (Box 7).
QTRE includes tuition, fees, and required course materials but excludes room and board, insurance, or personal expenses. Institutions must file for each enrolled student with a reportable transaction, except in cases like non-credit courses or nonresident aliens (unless requested). Students typically receive their 1098-T by January 31, 2026.
Who Must File Forms 1098-E and 1098-T?
For Form 1098-E
- Financial institutions, governmental units, educational institutions, or other entities receiving $600 or more in student loan interest from an individual.
- If multiple parties are involved, only the first recipient of the interest files the form.
For Form 1098-T
- Eligible educational institutions (postsecondary schools participating in federal student aid programs) for each enrolled student.
- Insurers for reimbursements or refunds of QTRE.
- If a third party collects payments, they may file if they have the necessary information; otherwise, the institution does.
Exceptions include non-credit courses, fully scholarship-covered students, or certain employer/government billing arrangements.
Filing Deadlines and Methods for 2025
Filers must furnish statements to recipients (borrowers or students) by January 31, 2026. Electronic delivery is allowed with consent, and online fillable PDF versions are available on IRS.gov.
For IRS submission:
- Paper filing: Due by February 28, 2026 (or the next business day if on a weekend).
- Electronic filing: Due by March 31, 2026.
- Use the Information Returns Intake System (IRIS) for e-filing, especially since the threshold has dropped to 10 returns (aggregated across all information returns).
Refer to IRS Publication 1220 for electronic filing specifications.
What’s New in the 2025 Instructions?
The 2025 instructions highlight several updates:
- Reduced E-Filing Threshold: Now set at 10 returns, down from 250, per Treasury regulations. This applies to all information returns filed after January 1, 2024.
- IRIS Portal: A new online system for e-filing information returns starting from tax year 2022 onward.
- Online Fillable Forms: Copy B of both forms can now be completed online via PDF at IRS.gov/Form1098E or IRS.gov/Form1098T to simplify furnishing to recipients.
Stay updated via IRS.gov for any future developments, such as legislative changes.
Specific Instructions for Filing Form 1098-E
- Qualified Loans: Report only on loans certified for higher education expenses. Use Form W-9S to obtain borrower certifications.
- Revolving Accounts: Report if certified for exclusive education use; exclude mixed-use loans.
- Box 1 Reporting: Include origination fees and capitalized interest for loans after September 1, 2004.
- Truncating TINs: Allowed on borrower statements but not on IRS copies.
- Account Numbers: Required for multiple accounts; encouraged for all.
Specific Instructions for Filing Form 1098-T
- Enrollment Determination: Based on the institution’s rules or standard reporting dates.
- Box 1: Report net payments received (after refunds), including prior-year dues if billed.
- Box 5: Include all scholarships and grants processed, even from third parties.
- Academic Periods: Check Box 7 for payments applying to early 2026 terms.
- Student TIN: Use Form W-9S; check the certification box if properly solicited.
- Insurers: Report refunds in Box 10.
Penalties for Non-Compliance
Failure to file or furnish correct forms can result in penalties:
- Up to $310 per form for failure to file by the due date.
- Additional penalties for intentional disregard or failure to provide TINs.
- Backup withholding may apply if TINs are missing.
Consult the General Instructions for Certain Information Returns for full details.
Frequently Asked Questions (FAQs) About IRS Forms 1098-E and 1098-T
When will I receive my 1098-T or 1098-E?
Institutions and lenders must send them by January 31, 2026.
Can I get these forms electronically?
Yes, with your consent, filers can provide them digitally.
What if my 1098-T shows incorrect information?
Contact your educational institution’s administrative office to request corrections.
Do nonresident aliens need a 1098-T?
Generally no, unless they request one.
How does Form 1098-E affect my taxes?
It supports the student loan interest deduction; consult a tax professional for eligibility.
Conclusion
Navigating IRS Forms 1098-E and 1098-T is essential for accurate tax reporting and claiming education benefits. By following the 2025 instructions, filers can avoid penalties while helping taxpayers access valuable deductions and credits. For the most current guidance, visit IRS.gov or consult a tax advisor. This guide is based on official IRS resources to ensure reliability and up-to-date information as of February 2026.