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What is Form 1098-E?

Form 1098-E is used to report the interest amount that the taxpayers paid on student loans in a calendar year during a tax year. Companies use IRS Form 1098-E to report how much the filer paid in interest. The $600 threshold applies to each borrower regardless of the number of student loans obtained by that borrower. Form 1098-E is filled by a financial institution, governmental unit, subsidiary agency, or educational institution, this may include anyone who may receive an interest in a student loan of $600 or more within the year during their trade school or business.

How to File IRS Form 1098-E?

The filer may use Form W-9 S, this form can be requested by the students’ or borrower. The use of Form W-9S is optional; the filer may collect the information by using their forms, such as admission or enrolment forms, or financial aid applications. When Filing a Form 1098-E the filer will need the student or borrower’s name, address, EIN, and a loan certification.

1098 E Form
Instructions on filing Form 1098-E:
  • Box 1: Student Loan Interest Received by Lender
  • Box 2: Checkbox - Check if box 1 does not include loan origination fees and/or capitalized interest, and the loan was made before September 1, 2004
Information required to file Form 1098-E
  • Taxpayer’s (RECIPIENT/BORROWER) information
  • Account number
  • Student Loan Interest

Watch our step-by-step video on How to E-File IRS Form 1098-E with Tax2efile

Common Payers that File Form 1098-E?

  • An eligible educational institution that is a governmental unit
  • An agency
  • Instrumentality of a governmental unit

If another filer receives or collects payments of qualified tuition and related expenses on their behalf, the other person must file Form 1098-T.

Form 1098-E?

Filing Form 1098-E allows students to report student loan interest statements if they receive loan interest of $600 or more from an individual during the year. However, the filer may file a separate Form 1098-E for each student loan of the borrower, or they may file one Form 1098-E for the interest from all student loans of the borrower.

Remember to select printing and mailing and/or emailing service when completing your 1098-E return so your students can get their student copies of 1098-E efficiently and without delay. For more questions or assistance reach out to our support team.

Note: The filer can deduct up to $2,500 worth of student loan interest from their taxable income if they meet certain conditions: The interest was their legal obligation to pay, not someone else’s. Their filing status should not be married filing separately.

For more information on Form 1098-E, please visit IRS.

When is the Due Date to File Form 1098-E Tax Return?

Filing Type Deadline
Recipient copy January 31st
IRS Paper Filing February 28th
IRS Electronic Filing March 31st

Note: If the due date/deadline falls on a Saturday, Sunday, or federal holiday, the filer will need to E-file on the next business day.

Still have questions?

Form 1098-E is used for Student Loan Interest Statement, Form 1098-E is used to report student loan interest received during course trade.

File Form 1098-E if you are a financial institution, governmental unit (or any of its subsidiary agencies), educational institution, or any other person who receives student loan interest of $600 or more from an individual during the year in the course of your trade or business. If more than one person has a connection with the loan, only the first person to receive the interest payment must file Form 1098-E. For example, a loan service or collection agent receiving payments on behalf of the lender must file.

Required Details to file Form 1098-E are Recipient & Borrowers Name, Address, TINs as well as student loan interest received by lender

Yes, Tax2efile offers a bulk upload feature that allows the user to upload all of the Borrower to an excel sheet for a faster process.

Tax2efile allows you to correct a mistake to the borrowers’ information for TINs, Names & amounts.

Yes, Tax2efile offers printing and mailing service! Our dedicated team will print and mail out each form you filed.

Using our fast electronic service, you can complete your filing within 5 minutes.

To file Form 1098-E for a single return the filing fee is $3.25.

The IRS requires Form 1098-E to be submitted by February 28 through the mail and by March 31 if you file the form electronically however, recipients’ copy should be mailed by January 31

The penalty can be from $50 per 1098 form, the maximum penalty can be up to $194,000. The penalty increases to $100 per 1098 form if you submit more than 30 days after the due date, but by August 1; the maximum penalty is $556,500. If you file after August 1, the penalty increases to $280 per 1098 form, with a maximum of $3,392,000. Additionally, there are penalties for failure to furnish the payee statement

If you have more questions, please refer to our FAQ page.

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