What Is Form 1098-E? — How the Student Loan Interest Deduction Works (2025)
If you paid interest on a federal or private student loan in 2024, your loan servicer may send you Form 1098-E.
This form reports how much student loan interest you paid—information you’ll need to claim the Student Loan Interest Deduction on your 2025 tax return.
What Is Form 1098-E?
Form 1098-E is an annual statement that shows the total amount of student loan interest you paid during the year.
Loan servicers are required to issue this form when you pay $600 or more in interest, but you can still request it even if you paid less.
How Much Can You Deduct?
The Student Loan Interest Deduction allows eligible taxpayers to deduct up to $2,500 of student loan interest each year.
This deduction applies only to interest paid on a qualified student loan:
- The loan must have been used for qualified higher-education expenses
- The education must have been for you, your spouse, or your dependent
- You must be legally obligated to pay the loan
This is an above-the-line deduction, meaning you can claim it even if you take the standard deduction—no itemizing required.
2025 Income Phase-Out Rules
The deduction gradually phases out based on modified adjusted gross income (MAGI):
- Single: Phase-out begins at $80,000 / eliminated at $95,000
- Married Filing Jointly: Phase-out begins at $165,000 / eliminated at $195,000
Married Filing Separately is not eligible for this deduction.
FAQs
1) I didn’t get a Form 1098-E. Can I still claim the deduction?
Yes. You can use your loan servicer’s interest statement or online payment history.
2) Can I deduct interest if my parent paid my student loan?
No. Only the person legally responsible for the loan can deduct the interest.
3) Does refinancing affect eligibility?
Usually no—refinanced loans can still qualify as long as the original purpose was education.
핑백: The Ultimate 2025 ITIN Application Guide