IRS Form 1098-E – If you’re paying off student loans, you may qualify for a valuable tax break: the student loan interest deduction. This allows eligible taxpayers to deduct up to $2,500 of paid interest from their taxable income. The key document for claiming this deduction is IRS Form 1098-E, officially known as the Student Loan Interest Statement (Info Copy Only).
This article explains what Form 1098-E is, who receives it, how it supports your taxes, eligibility for the deduction, and current rules for tax year 2025 (filed in 2026). All information is based on official IRS sources, including Publication 970, Topic No. 456, and the Form 1098-E page.
What Is IRS Form 1098-E?
Form 1098-E is an informational tax form issued by your student loan servicer or lender. It reports the total amount of interest you paid on qualified student loans during the calendar year.
- Purpose: Lenders must file Form 1098-E and provide a copy to borrowers if they received $600 or more in student loan interest payments from an individual in the course of their trade or business.
- “Info Copy Only”: This indicates it’s for your records and tax filing purposes—not for filing with the IRS yourself (your servicer reports it directly).
- Download the latest PDF: Access the current version of Form 1098-E here: https://www.irs.gov/pub/irs-pdf/f1098e.pdf. Note that the form includes a statement reminding borrowers they may deduct interest paid in the relevant tax year (e.g., 2025).
Even if you paid less than $600 in interest, some servicers provide the form or equivalent information voluntarily. You can often download it from your loan servicer’s online portal.
Who Receives Form 1098-E?
You should receive Form 1098-E (by mail, email, or online access) if:
- You paid $600 or more in interest on a qualified student loan in the tax year.
- The lender is required to report (typically federal or private student loan servicers).
For federal loans, check your servicer portal (e.g., via StudentAid.gov). Servicers like MOHELA or Nelnet typically make tax information available by January 31 each year.
If you have multiple loans or servicers, you might receive more than one Form 1098-E. Add up the interest amounts from all forms when claiming the deduction.
How Form 1098-E Helps with the Student Loan Interest Deduction?
The student loan interest deduction is an above-the-line adjustment to income, meaning you can claim it even if you take the standard deduction.
Key details for tax year 2025:
- Maximum deduction: Up to $2,500 (or the actual interest paid, whichever is less).
- Eligibility requirements (from IRS Publication 970 and Topic No. 456):
- You paid interest on a qualified student loan (used for higher education expenses for you, your spouse, or a dependent).
- You are legally obligated to pay the interest.
- You are not filing as married filing separately.
- You (and your spouse, if applicable) are not claimed as dependents on someone else’s return.
- Income limits (phaseout ranges): The deduction phases out based on your modified adjusted gross income (MAGI).
- Single, head of household, or qualifying surviving spouse: Full deduction if MAGI ≤ $85,000; partial between $85,000–$100,000; none if ≥ $100,000.
- Married filing jointly: Full deduction if MAGI ≤ $170,000; partial between $170,000–$200,000; none if ≥ $200,000.
Use the worksheet in IRS Publication 970 to calculate your exact deduction amount.
Steps to Claim the Deduction Using Form 1098-E
- Gather your Form(s) 1098-E to confirm the interest paid.
- Check your MAGI (generally AGI plus certain exclusions/add-backs—see Pub. 970).
- Enter the deductible amount on Schedule 1 (Form 1040), line for student loan interest deduction.
- File your return (software like TurboTax or TaxAct often imports or guides entry from 1098-E).
Always keep records, as the IRS may request verification.
Common Questions About Form 1098-E
- What if I didn’t receive one? If you paid interest but under $600, track payments yourself (from statements or servicer portal). You can still deduct if eligible.
- Private vs. federal loans? Both qualify if they meet IRS criteria for qualified student loans.
- Recent changes? No major updates noted for Form 1098-E itself in recent IRS revisions (as of early 2026). The deduction rules remain consistent, with phaseout limits adjusted for inflation in some years.
- Where to learn more? Refer to official IRS resources:
The student loan interest deduction can lower your tax bill significantly if you qualify. Review your Form 1098-E carefully and consult IRS.gov or a tax professional for personalized advice. Stay informed, as tax rules can evolve—check for updates directly from the IRS.
This article is for informational purposes only and is based on IRS guidelines as of February 2026.