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How to File a Form 1098-E (Student Loan Interest Statement) in TaxSlayer
How to File a Form 1098-E (Student Loan Interest Statement) in TaxSlayer
Angelica Acebes avatar
Written by Angelica Acebes
Updated over 2 weeks ago

1. What is Form 1098-E?

Form 1098-E is provided by the entity servicing the taxpayer’s student loan if they paid $600 or more in interest during the tax year. This form allows taxpayers to claim a student loan interest deduction, which can help reduce taxable income and overall tax liability.

2. How to Enter Form 1098-E Information

Step 1: Access the Review/Print Section

  • From the left-hand side of the main tax return page, select Review/Print to expand the menu.

Step 2: Navigate to Schedule 1

  • Click on the Schedule 1 tab to open the Additional Income and Adjustments to Income form.

Step 3: Locate the Student Loan Interest Deduction

  • Scroll down to Part II – Adjustments to Income.

  • Find Line 21 (Student Loan Interest Deduction) and click the menu icon to open the worksheet.

Step 4: Enter the Interest Paid

  • On the Student Loan Interest Deduction Worksheet, enter the total interest paid (as shown on Form 1098-E) in Line 1.

  • Note: The maximum deductible amount is $2,500. The software will not accept a higher amount.

3. Important Notes

Income Limits for Deduction

  • Single filers:

    • Deduction is reduced at $75,000 AGI.

    • Deduction is eliminated at $90,000 AGI.

  • Married Filing Jointly:

    • Deduction is reduced at $155,000 AGI.

    • Deduction is eliminated at $185,000 AGI.

This deduction is NOT available if:

  • Filing status is Married Filing Separately.

  • The taxpayer is claimed as a dependent on someone else’s return.

Let us know if you need any further assistance!

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