If you paid interest on a qualified student loan during the 2026 tax year, you may receive Form 1098-E, Student Loan Interest Statement from your lender or loan servicer. This form reports the amount of student loan interest you paid and may help you qualify for the Student Loan Interest Deduction.
The deduction is an adjustment to income, which means eligible taxpayers can potentially reduce their taxable income even if they do not itemize deductions.
How Do I Enter Form 1098-E in the Program?
To enter your student loan interest information:
- Go to Federal
- Select Deductions
- Choose My Forms
- Select Adjustments to Income
- Select Student Loan Interest
Enter the information from your Form 1098-E as it appears on the form.
What Is Form 1098-E?
Form 1098-E is issued by a financial institution or loan servicer that received student loan interest payments from you during the year. In most cases, lenders are required to provide this form if you paid $600 or more in student loan interest during the tax year.
The form reports the amount of interest paid on qualified student loans, which may be deductible if you meet IRS eligibility requirements.
What If I Paid Less Than $600 in Interest?
You may not receive Form 1098-E if you paid less than $600 in student loan interest. However, you may still be eligible to claim the Student Loan Interest Deduction if:
- The interest was paid on a qualified student loan.
- You meet the IRS income and filing requirements.
- You can obtain documentation showing the amount of interest paid.
Many loan servicers provide an annual interest summary through your online account, even when no Form 1098-E is issued.
Why Is Form 1098-E Important?
Student loan interest can help reduce your taxable income when you qualify for the deduction. Because it is an adjustment to income, you may be able to claim the benefit without itemizing deductions on Schedule A.
Keeping your Form 1098-E and loan records with your tax documents can help ensure you claim the correct amount.
Need to See a Sample Form?
A sample Form 1098-E can help you identify where the interest amount is reported and verify the information entered into your return.
Please click here to see a sample of Form 1098-E.