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Level 1

Can I deduct interest paid on a private student loan without having a 1098-E?

 
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Level 7

Can I deduct interest paid on a private student loan without having a 1098-E?

Many people do not receive a 1098-E, often because the institution is only required to issue a form if the amount was over $600.  The fact that you did not receive a 1098-E does not prevent you from claiming the interest, as long as the loan is a "Qualified Student Loan."   

The IRS defines a Qualified Student Loan as follows: 

This is a loan you took out solely to pay qualified education expenses (defined later) that were:

  • For you, your spouse, or a person who was your dependent when you took out the loan;
  • Paid or incurred within a reasonable period of time before or after you took out the loan; and
  • For education provided during an academic period for an eligible student.

Loans from the following sources aren't qualified student loans.

  • Related person.   You can't deduct interest on a loan you get from a related person. Related persons include:

    Your spouse;
    Your brothers and sisters;
    Your half brothers and half sisters;
    Your ancestors (parents, grandparents, etc.);
    Your lineal descendants (children, grandchildren, etc.); and
    Certain corporations, partnerships, trusts, and exempt organizations.

  • Qualified employer plan.   You can't deduct interest on a loan made under a qualified employer plan or under a contract purchased under such a plan.


For more information, please see this IRS publication:  https://www.irs.gov/publications/p970/ch04.html#en_US_2015_publink1000178237

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Level 7

Can I deduct interest paid on a private student loan without having a 1098-E?

Many people do not receive a 1098-E, often because the institution is only required to issue a form if the amount was over $600.  The fact that you did not receive a 1098-E does not prevent you from claiming the interest, as long as the loan is a "Qualified Student Loan."   

The IRS defines a Qualified Student Loan as follows: 

This is a loan you took out solely to pay qualified education expenses (defined later) that were:

  • For you, your spouse, or a person who was your dependent when you took out the loan;
  • Paid or incurred within a reasonable period of time before or after you took out the loan; and
  • For education provided during an academic period for an eligible student.

Loans from the following sources aren't qualified student loans.

  • Related person.   You can't deduct interest on a loan you get from a related person. Related persons include:

    Your spouse;
    Your brothers and sisters;
    Your half brothers and half sisters;
    Your ancestors (parents, grandparents, etc.);
    Your lineal descendants (children, grandchildren, etc.); and
    Certain corporations, partnerships, trusts, and exempt organizations.

  • Qualified employer plan.   You can't deduct interest on a loan made under a qualified employer plan or under a contract purchased under such a plan.


For more information, please see this IRS publication:  https://www.irs.gov/publications/p970/ch04.html#en_US_2015_publink1000178237