Yes, you can report the student loan interest on a consolidated loan. When you consolidated - you paid off the accrued interest on the loans, and this portion is deductible. The maximum deduction is up to $2500.
Thank you, I have been on hold for over 50 minutes with Turbotax waiting for that simple answer of yes or no. Thank you for your prompt response!
My question relates to this as I consolidated my loans but the interest paid on my 1098-e is over 2500.00. do i enter the number on my 1098-e or can I only enter 2500? Please advise.
It is best practice to enter your tax forms into TurboTax just as you received them.
So, in your case, you would enter the number reported on Form 1098-E even though it does exceed $2500.00. The program will then apply the adjustment limitation of $2500.00 on your return.