No, you will not get in trouble with the IRS if you forgot to claim your student loan interest on form 1098-E. But you will lose the opportunity of an income deduction of up to $2,500.
This was my exact concern too. I paid off my student loans early last year and only paid $51.02 in student loan interest. I always use the Free Version of Turbo Tax to do my taxes and I remember that last year there was a notice stating that because of the 2018 tax law changes that I could no longer use the free version because of my 1098-E form but since it was a new law change Turbo Tax granted a 1 year grace on the start of that rule. That means that when I file my taxes this year the rule would be in effect and I would be forced to pay $80 to upgrade to the Deluxe Edition just so I claim a $50 deduction. That is ridiculous. So I just figured that I would omit that form, use the Free version, and save the $30 difference. My only hesitation is that despite omitting the form is a logical move, the word 'Logic' is not part of the IRS's vocabulary and I was wondering if NOT claiming a deduction from a form that was automatically sent to the IRS from the lenders would result in problems.
No you will not be in trouble and the IRS will love you for it since it will reduce your taxable income. In your case, probably not by much.
Is it too late to re-enter my 1098-E after I submitted my 2020 tax returns? Both my Fed and State e-file were received.
If you filed, it is like dropping it into a mailbox - you cannot get it back.
You'll have to wait until your return is either accepted or rejected.
If rejected, you can make any necessary changes.
If accepted, you'll need to amend your return.
To avoid unnecessary delays, do not amend until your original return has been fully processed.
You can e-file your 2020 amended federal tax return, but most states require amendments to be printed and filed by mail.
Allow 16 weeks for processing.
See this TurboTax FAQ for help with amending.
You can check the status of your amended return here, but allow 3 weeks after filing for it to show up.