IRS Form 1098-E, Student Loan Interest Statement (also known as the School Tax Form or the College Tax Form), is a form that reports the interest amount that was paid on qualified student loans during the calendar year when the amount exceeds $600. It is filed with the Internal Revenue Service (IRS) by a lending person or a lending institution, which may be either a financial or an educational institution, a governmental unit or a subsidiary agency, among others. The IRS is the department that issues this form every year.
If you are an eligible financial institution or person, you may get an official IRS 1098-E Form Copy A to be filed with the IRS by placing an order through the IRS website to receive it in the mail. Copies B and CA of the fillable Form 1098-E are available below or in a PDF format on the IRS website. They may be downloaded, printed, and used to furnish the statement to the borrower.
If you are a student loan borrower, you will receive a copy of this form by the lending institution or person, as long as your interest payment amount during the calendar year adds up to at least $600 on one or more qualified student loans.
A 1098-E tax form may be used by a student loan borrower to deduct the interest amount paid on their income tax return for the previous year. However, they may not be able to deduct the total amount reported on this student loan tax return. For more information, see IRS Publication 970, as well as Form 1040 Instructions.
The IRS provides separate Instructions for Form 1098-E. The $600 minimum amount applies to each borrower regardless of the number of student loans obtained by that borrower. However, the financial institution or person may file a separate Form 1098-E for each borrower's student loan or one Form 1098-E for the interest from all student loans of the borrower.
Note that if more than one person is involved with the loan, only the first person to receive the interest payment (i.e. a collection agent who receives payment on behalf of the lender) must file Form 1098-E.
The financial institution or person is required to furnish a copy of this form, on paper or electronically, to the borrower. The due date for providing the student loan borrower with this form is January 31, 2020.
Financial institutions or persons must file electronically if they need to file 250 or more returns. Forms 1098-E on paper shall be filed by February 28, 2020, or March 31, 2020, if filed electronically. Late filing penalties shall apply if the lender fails to file a correct information return by the due date providing no reasonable cause. The penalties are below:
Taxpayers who mail paper versions of their tax returns are required to enclose a Form 1096 with their Form 1098-E. It is possible to file information returns electronically via the IRS Filing Information Returns Electronically (FIRE) system or the IRS Affordable Care Act Information Returns (AIR) program.
Form 1098-E is part of the 1098 form series, which comprises a total of five forms, and all of them deal with deductions. The other versions of Form 1098 are the following:
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