Instructions for IRS Form 1098-E, 1098-T "Student Loan Interest Statement and Tuition Statement"

This document contains official instructions for IRS Form 1098-E, and IRS Form 1098-T. Both forms are released and collected by the Internal Revenue Service (IRS), a subdivision of the U.S. Department of the Treasury. An up-to-date fillable IRS Form 1098-E is available for download through this link. The latest available IRS Form 1098-T can be downloaded through this link.

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2020
Department of the Treasury
Internal Revenue Service
Instructions for Forms
1098-E and 1098-T
Student Loan Interest Statement and Tuition Statement
Section references are to the Internal Revenue Code unless
Form W-9S, and
otherwise noted.
4. Be able to supply a hard copy of the electronic
Form W-9S if the Internal Revenue Service requests it.
Future Developments
Also, if an electronic Form W-9S is used to obtain the
For the latest information about developments related to
borrower’s certification that all the loan proceeds are used
Forms 1098-E and 1098-T and their instructions, such as
solely to pay qualified higher education expenses, your
legislation enacted after they were published, go to
IRS.gov/
electronic system must require, as the final entry in the
Form1098E
or IRS.gov/Form1098T.
submission, an electronic signature by the borrower whose
Reminders
name is on Form W-9S. The signature authenticates and
verifies the submission. See Announcement 98-27, which is
General instructions. In addition to these specific
on page 30 of Internal Revenue Bulletin 1998-15 at
instructions, you should also use the 2020 General
IRS.gov/pub/irs-irbs/irb98-15.pdf.
Instructions for Certain Information Returns. Those general
instructions include information about the following topics.
Specific Instructions for Form 1098-E
Who must file.
When and where to file.
File Form 1098-E, Student Loan Interest Statement, if you
Electronic reporting.
receive student loan interest of $600 or more from an
individual during the year in the course of your trade or
Corrected and void returns.
Statements to recipients.
business.
Taxpayer identification numbers (TINs).
The $600 threshold applies to each borrower regardless
Backup withholding.
of the number of student loans obtained by that borrower.
Penalties.
However, you may file a separate Form 1098-E for each
Other general topics.
student loan of the borrower, or you may file one Form
You can get the General Instructions for Certain
1098-E for the interest from all student loans of the borrower.
Information Returns at
IRS.gov/1099GeneralInstructions
or
Who must file. File Form 1098-E if you are a financial
go to
IRS.gov/Form1098E
or IRS.gov/Form1098T.
institution, governmental unit (or any of its subsidiary
Online fillable Copies B and C. To ease statement
agencies), educational institution, or any other person who
furnishing requirements, Copies B and C of Forms 1098-E
receives student loan interest of $600 or more from an
and 1098-T are fillable online in a PDF format, available at
individual during the year in the course of your trade or
IRS.gov/Form1098E
or IRS.gov/Form1098T. You can
business.
complete these copies online for furnishing statements to
If more than one person has a connection with the loan,
recipients and for retaining in your own files.
only the first person to receive the interest payment must file
Form W-9S. You may use Form W-9S, Request for
Form 1098-E. For example, a loan service or collection agent
Student’s or Borrower’s Taxpayer Identification Number and
receiving payments on behalf of the lender must file.
Certification, to obtain the student’s or borrower’s name,
Qualified student loan. To be reportable for 2020, a
address, taxpayer identification number, and student loan
student loan must be either:
certification to be used when filing Form 1098-E or 1098-T.
Subsidized, guaranteed, financed, or otherwise treated as
Use of Form W-9S is optional; you may collect the
a student loan under a program of the federal, state, or local
information using your own forms, such as admission or
government, or of a postsecondary educational institution; or
enrollment forms, or financial aid applications. You may
Certified by the borrower as a student loan incurred solely
collect the student’s or borrower’s information on paper or
to pay qualified higher education expenses. You may use
electronically.
Form W-9S to obtain the certification.
Electronic submission of Form W-9S. An educational
institution, insurer, or lender may establish a system for
Revolving accounts. Report interest paid on revolving
students and borrowers to submit Form W-9S electronically,
accounts, such as credit card accounts, only if the borrower
including by fax. Generally, the electronic system must:
certifies that all the loan proceeds are solely used to pay
qualified higher education expenses. You do not have to
1. Ensure the information received is the information sent
verify the borrower’s actual use of the funds. Do not report
and document all occasions of user access that result in the
interest on mixed use loans.
submission,
2. Make reasonably certain the person accessing the
Loans under qualified plans. Do not report interest on
system and submitting the form is the person identified on
loans made under a qualified employer plan, as defined in
Form W-9S,
section 72(p)(4), or under a contract purchased under a
3. Provide you with the same information as the paper
Sep 18, 2019
Cat. No. 27990J
2020
Department of the Treasury
Internal Revenue Service
Instructions for Forms
1098-E and 1098-T
Student Loan Interest Statement and Tuition Statement
Section references are to the Internal Revenue Code unless
Form W-9S, and
otherwise noted.
4. Be able to supply a hard copy of the electronic
Form W-9S if the Internal Revenue Service requests it.
Future Developments
Also, if an electronic Form W-9S is used to obtain the
For the latest information about developments related to
borrower’s certification that all the loan proceeds are used
Forms 1098-E and 1098-T and their instructions, such as
solely to pay qualified higher education expenses, your
legislation enacted after they were published, go to
IRS.gov/
electronic system must require, as the final entry in the
Form1098E
or IRS.gov/Form1098T.
submission, an electronic signature by the borrower whose
Reminders
name is on Form W-9S. The signature authenticates and
verifies the submission. See Announcement 98-27, which is
General instructions. In addition to these specific
on page 30 of Internal Revenue Bulletin 1998-15 at
instructions, you should also use the 2020 General
IRS.gov/pub/irs-irbs/irb98-15.pdf.
Instructions for Certain Information Returns. Those general
instructions include information about the following topics.
Specific Instructions for Form 1098-E
Who must file.
When and where to file.
File Form 1098-E, Student Loan Interest Statement, if you
Electronic reporting.
receive student loan interest of $600 or more from an
individual during the year in the course of your trade or
Corrected and void returns.
Statements to recipients.
business.
Taxpayer identification numbers (TINs).
The $600 threshold applies to each borrower regardless
Backup withholding.
of the number of student loans obtained by that borrower.
Penalties.
However, you may file a separate Form 1098-E for each
Other general topics.
student loan of the borrower, or you may file one Form
You can get the General Instructions for Certain
1098-E for the interest from all student loans of the borrower.
Information Returns at
IRS.gov/1099GeneralInstructions
or
Who must file. File Form 1098-E if you are a financial
go to
IRS.gov/Form1098E
or IRS.gov/Form1098T.
institution, governmental unit (or any of its subsidiary
Online fillable Copies B and C. To ease statement
agencies), educational institution, or any other person who
furnishing requirements, Copies B and C of Forms 1098-E
receives student loan interest of $600 or more from an
and 1098-T are fillable online in a PDF format, available at
individual during the year in the course of your trade or
IRS.gov/Form1098E
or IRS.gov/Form1098T. You can
business.
complete these copies online for furnishing statements to
If more than one person has a connection with the loan,
recipients and for retaining in your own files.
only the first person to receive the interest payment must file
Form W-9S. You may use Form W-9S, Request for
Form 1098-E. For example, a loan service or collection agent
Student’s or Borrower’s Taxpayer Identification Number and
receiving payments on behalf of the lender must file.
Certification, to obtain the student’s or borrower’s name,
Qualified student loan. To be reportable for 2020, a
address, taxpayer identification number, and student loan
student loan must be either:
certification to be used when filing Form 1098-E or 1098-T.
Subsidized, guaranteed, financed, or otherwise treated as
Use of Form W-9S is optional; you may collect the
a student loan under a program of the federal, state, or local
information using your own forms, such as admission or
government, or of a postsecondary educational institution; or
enrollment forms, or financial aid applications. You may
Certified by the borrower as a student loan incurred solely
collect the student’s or borrower’s information on paper or
to pay qualified higher education expenses. You may use
electronically.
Form W-9S to obtain the certification.
Electronic submission of Form W-9S. An educational
institution, insurer, or lender may establish a system for
Revolving accounts. Report interest paid on revolving
students and borrowers to submit Form W-9S electronically,
accounts, such as credit card accounts, only if the borrower
including by fax. Generally, the electronic system must:
certifies that all the loan proceeds are solely used to pay
qualified higher education expenses. You do not have to
1. Ensure the information received is the information sent
verify the borrower’s actual use of the funds. Do not report
and document all occasions of user access that result in the
interest on mixed use loans.
submission,
2. Make reasonably certain the person accessing the
Loans under qualified plans. Do not report interest on
system and submitting the form is the person identified on
loans made under a qualified employer plan, as defined in
Form W-9S,
section 72(p)(4), or under a contract purchased under a
3. Provide you with the same information as the paper
Sep 18, 2019
Cat. No. 27990J
qualified employer plan within the meaning of section 72(p)
Specific Instructions for Form 1098-T
(5).
File Form 1098-T, Tuition Statement, if you are an eligible
Additional information. For more information about
educational institution. You must file for each student you
reporting student loan interest, see Regulations section
enroll and for whom a reportable transaction is made. Also, if
1.6050S-3.
you are an insurer, file Form 1098-T for each individual to
Statements to borrowers. If you are required to file Form
whom you made reimbursements or refunds of qualified
1098-E, you must provide a statement or acceptable
tuition and related expenses.
substitute, on paper or electronically, to the borrower. For
Exceptions. You do not have to file Form 1098-T or furnish
more information about the requirements to furnish a
a statement for:
statement to the borrower, see part M in the 2020 General
Courses for which no academic credit is offered, even if
Instructions for Certain Information Returns.
the student is otherwise enrolled in a degree program;
Electronic delivery of Form 1098-E. Educational
Nonresident alien students, unless requested by the
institutions, insurers, and lenders may present the option to
student;
consent to receive Form 1098-E electronically as part of a
Students whose qualified tuition and related expenses are
global “Consent To Do Business Electronically,” combining
entirely waived or paid entirely with scholarships; and
consent for electronic delivery of Form 1098-E along with
Students for whom you do not maintain a separate
other institutional student business functions such as
financial account and whose qualified tuition and related
admissions, registration, billings, and direct deposits.
expenses are covered by a formal billing arrangement
The global consent process must meet all the consent,
between an institution and the student’s employer or a
disclosure, format, notice, and access period requirements
governmental entity, such as the Department of Veterans
for electronic furnishing of Forms 1098-E in accordance with
Affairs or the Department of Defense.
the applicable regulations. For more information about the
requirements to furnish a statement to each student, see part
Who must file. You must file Form 1098-T if you are an
M in the 2020 General Instructions for Certain Information
eligible educational institution. An eligible educational
Returns.
institution that is a governmental unit, or an agency or
instrumentality of a governmental unit, is subject to the
Truncating borrower’s TIN on payee statements.
reporting requirements of Form 1098-T. A designated officer
Pursuant to Regulations section 301.6109-4, all filers of Form
or employee of the governmental entity must satisfy the
1098-E may truncate a borrower’s TIN (social security
reporting requirements of Form 1098-T.
number (SSN), individual taxpayer identification number
If another person receives or collects payments of
(ITIN), adoption taxpayer identification number (ATIN), or
qualified tuition and related expenses on your behalf, the
employer identification number (EIN)) on payee statements.
other person must file Form 1098-T. However, if the other
Truncation is not allowed on any documents the filer files with
person does not possess the information necessary to
the IRS. A recipient’s/lender’s TIN may not be truncated on
comply with the reporting requirements of Form 1098-T, then
any form. See part J in the 2020 General Instructions for
you must satisfy the reporting requirements of Form 1098-T.
Certain Information Returns.
Also, if you are an insurer engaged in a trade or business
Recipient’s/lender’s name, address, and telephone
of making refunds or reimbursements of qualified tuition and
number box. Enter the name, address, and telephone
related expenses, you are required to file Form 1098-T. See
number of the filer of Form 1098-E. Use this same name and
the instructions for
box
10, later.
address on Form 1096, Annual Summary and Transmittal of
U.S. Information Returns.
Eligible educational institution. An eligible educational
institution is a college, university, vocational school, or other
Account number. The account number is required if you
postsecondary educational institution that is described in
have multiple accounts for a recipient for whom you are filing
section 481 of the Higher Education Act of 1965 as in effect
more than one Form 1098-E. Additionally, the IRS
on August 5, 1997, and that is eligible to participate in the
encourages you to designate an account number for all
Department of Education’s student aid programs. This
Forms 1098-E that you file. See part L in the 2020 General
includes most accredited public, nonprofit, and private
Instructions for Certain Information Returns.
postsecondary institutions.
Box 1. Student Loan Interest Received by
Qualified tuition and related expenses. Qualified tuition
Lender
and related expenses are tuition, fees, and course materials
required for a student to be enrolled at or attend an eligible
Enter the interest you received on a student loan(s) during
educational institution.
the calendar year. For loans made on or after September 1,
The following are not qualified tuition and related
2004, you are required to include in box 1 payments of
expenses.
interest as described in Regulations section 1.221-1(f).
Under that regulation, interest includes capitalized interest
Amounts paid for any course or other education involving
and loan origination fees that represent charges for the use
sports, games, or hobbies, unless the course or other
or forbearance of money. See Regulations section 1.221-1(f).
education is part of the student’s degree program or is taken
to acquire or improve job skills.
Box 2. Checkbox
Charges and fees for room, board, insurance, medical
Check this box if loan origination fees and/or capitalized
expenses (including student health fees), transportation, and
interest are not reported in box 1 for loans made before
similar personal, living, or family expenses.
September 1, 2004.
Academic credit. Academic credit is credit awarded by an
eligible educational institution for the completion of course
-2-
Instructions for Forms 1098-E and 1098-T (2020)
work leading to a postsecondary degree, certificate, or other
or other form. If you solicited the student’s TIN in writing
recognized postsecondary educational credential.
(Form W-9S or other form) for the current year, check the
box. Also check the box if you obtained the student’s TIN in a
Example. Student A, a medical doctor, takes a course at
prior year by making a solicitation in writing (Form W-9S or
University X’s medical school. Student A takes the course to
other form) or you obtained the student’s TIN in a prior year
fulfill State Y’s licensing requirement that medical doctors
from his or her financial aid application or other form and in
attend continuing medical education courses each year.
either case have no reason to believe the TIN previously
Student A is not enrolled in a degree program at University X
obtained is incorrect. Check the box if the institution is filing
and takes the medical course through University X’s
the Form 1098-T with nothing in the field for the student’s TIN
continuing professional education program. University X
because the institution has no record of a TIN, but only if you
does not award Student A credit toward a postsecondary
made a written solicitation for the TIN on or before December
degree on an academic transcript for the completion of the
31 of the year for which you are filing the Form 1098-T. By
course but gives Student A a certificate of attendance upon
checking the box and filing Form 1098-T with the IRS (for
completion. University X is not required to file Form 1098-T
electronic filers), you certify under penalties of perjury that
for the course taken by Student A.
you have in good faith complied with the standards in
Academic period. You must file Form 1098-T for each
Treasury Regulations section 1.6050S-1 governing the time
student who is enrolled in your institution for any academic
and manner of soliciting the TIN of the student. Filers who
period (for example, semester, trimester, or quarter) in 2020,
transmit paper forms to the IRS will make such certification
but see Exceptions, earlier. Determine your enrollment for
by signing Form 1096 in conjunction with filing the returns
each period under your own rules or use one of the following
with the boxes checked in the fields designated for the
dates.
student’s identification number.
30 days after the first day of the academic period.
Student’s address. In the student’s address box of Form
A date during the period when enrollment data must be
1098-T, enter the student’s permanent address. That is,
collected for purposes of the Integrated Postsecondary
enter the student’s home or other long-term address where
Education Data System administered by the Department of
he or she can receive forwarded mail. You may use a
Education.
temporary address only if you do not know the permanent
A date during the period when you must report enrollment
address.
data to the state, to your governing board, or to some other
external governing body.
Information contact and service provider. You must
provide your name, address, and telephone number. In
Additional information. For more information about
addition, you may include information on a third-party service
reporting on Form 1098-T, see Regulations section
provider who filed the form or who may answer questions
1.6050S-1. Also see Notice 2006-72, 2006-36 I.R.B. 363,
about the statement. Enter the service provider’s information
available at IRS.gov/irb/2006-36_IRB#NOT-2006-72, for
in the box below the student’s name and address.
guidance in a question-and–answer format on the information
reporting requirements for Form 1098-T.
You must provide the telephone number for the
information contact at the institution. Generally, this
Statements to students. If you are required to file Form
!
is an administrative office or department. Do not
1098-T, you must furnish a statement or acceptable
CAUTION
provide the institution’s general telephone number.
substitute, on paper or electronically, to the student.
Electronic delivery of Form 1098-T. Educational
Account number. The account number is required if you
institutions may present the option to consent to receive
have multiple accounts for a recipient for whom you are filing
Form 1098-T electronically as part of a global “Consent To
more than one Form 1098-T. Additionally, the IRS
Do Business Electronically,” combining consent for electronic
encourages you to designate an account number for all
delivery of Form 1098-T along with other institutional student
Forms 1098-T that you file. See part L in the 2020 General
business functions such as admissions, registration, billings,
Instructions for Certain Information Returns.
and direct deposits.
The global consent process must meet all the consent,
Box 1. Payments Received for Qualified Tuition
disclosure, format, notice, and access period requirements
and Related Expenses
for electronic furnishing of Forms 1098-T as required by
Enter the total amount of payments received for qualified
paragraphs (a)(2) through (6) of Treasury Regulations
tuition and related expenses from all sources during the
section 1.6050S-2. For more information about the
calendar year. The amount reported is the total amount of
requirements to furnish a statement to each student, see part
payments received less any reimbursements or refunds
M in the 2020 General Instructions for Certain Information
made during the calendar year that relate to the payments
Returns.
received for qualified tuition and related expenses during the
Truncating student’s TIN on payee statements. Pursuant
same calendar year. The amount reported is not reduced by
to Regulations section 301.6109-4, all filers of Form 1098-T
scholarships and grants reported in box 5. Include in this box
may truncate a student’s TIN (social security number (SSN),
the receipt of a payment of past-due qualified tuition or
individual taxpayer identification number (ITIN), adoption
related expenses from a previous calendar year, but only if
taxpayer identification number (ATIN), or employer
the educational institution previously billed the student for
identification number (EIN)) on payee statements. Truncation
such amount(s).
is not allowed on any documents the filer files with the IRS. A
filer’s TIN may not be truncated on any form. See part J in the
Box 2. Reserved
2020 General Instructions for Certain Information Returns.
This box is reserved for future use.
Student’s TIN and checkbox. Enter the student’s TIN, as
provided to you on Form W-9S, Request for Student’s or
Borrower’s Taxpayer Identification Number and Certification,
-3-
Instructions for Forms 1098-E and 1098-T (2020)
Box 3. Reserved
Box 6. Adjustments to Scholarships or Grants
for a Prior Year
This box is reserved for future use.
Enter the amount of any reduction to the amount of
Box 4. Adjustments Made for a Prior Year
scholarships or grants that were reported for any prior year
after 2002.
Payments received. Enter reimbursements or refunds of
qualified tuition and related expenses made in 2020 that
Box 7. Checkbox for Amounts for an Academic
relate to payments received that were reported for any prior
Period Beginning in January Through March of
year after 2002.
2021
Amounts billed. Enter any reductions in charges made for
Check this box if any payments received for qualified tuition
qualified tuition and related expenses made during the
and related expenses reported for 2020 relate to an
calendar year that relate to amounts billed that were reported
academic period that begins in January through March of
for any prior year after 2002.
2021.
These requirements also apply to an adjustment made in
connection with a nonresident alien for which the educational
Box 8. Check if at Least Half-Time Student
institution filed and furnished a Form 1098-T for the prior
Check this box if the student was at least a half-time student
year.
during any academic period that began in 2020. A half-time
Box 5. Scholarships or Grants
student is a student enrolled for at least half the full-time
academic workload for the course of study the student is
Enter the total amount of any scholarships or grants that you
pursuing. Your institution’s standard for a half-time student
administered and processed during the calendar year for the
work load must equal or exceed the standards established by
payment of the student’s costs of attendance. Scholarships
the Department of Education under the Higher Education Act
and grants generally include all payments received from third
and set forth in 34 C.F.R. section 668.2(b).
parties (excluding family members and loan proceeds). This
includes payments received from governmental and private
Box 9. Check if a Graduate Student
entities such as the Department of Veterans Affairs, the
Check this box if the student was a graduate student. The
Department of Defense, civic and religious organizations,
student is a graduate student if the student was enrolled in a
and nonprofit entities. However, see Exceptions, earlier.
program or programs leading to a graduate-level degree,
A scholarship or grant is administered and processed by
graduate-level certificate, or other recognized graduate-level
you if you receive payment of an amount, whether by check,
educational credential.
cash, electronic transfer, or other means, and such payment
Box 10. Insurance Contract Reimbursements or
is designated as a grant or a scholarship by the payor, or the
circumstances make it clear that the payment is a grant or
Refunds
scholarship. A Pell Grant is an example of a grant
If you are an insurer, enter the total amount of
administered and processed by a college or university in all
reimbursements or refunds of qualified tuition and related
cases.
expenses that you made to the student during 2020.
-4-
Instructions for Forms 1098-E and 1098-T (2020)
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