How do I claim student loan interest deduction if my loan is from Prodigy Finance (UK) and I don’t have Form 1098-E but have payment records (i.e., interest statement)?

[sharma-ashish7007]

When I go to the Student Loan Interest Deduction section, TurboTax asks if I received a 1098-E. If I select “No, this doesn’t apply to me,” I am not given an option to manually enter my interest paid. Since foreign lenders do not issue 1098-E forms, I need a way to input this information so that it is properly reported on Schedule 1, Line 21 of Form 1040. Could you please advise on how I can manually enter my student loan interest in TurboTax Desktop? If this is not possible, is there an alternative workaround?

[DawnC]

You need to answer Yes to receiving a 1098-E.   Then enter the information from your records.  You can claim the deduction in tax year 2024 if all of these apply:

• You paid interest on a qualified student loan in tax year 2024
• You, or your spouse if filing jointly, can't be claimed as dependents on someone else's return
• You're legally obligated to pay interest on the qualified student loan
• Your filing status isn't Married Filing Separately

Note: a qualified student loan is a loan you took out solely to pay qualified higher education expenses 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
• Paid within a reasonable period of time before or after taking out the loan

You can deduct up to $2500 if you qualify - See this TurboTax FAQ