Refinanced student loan in 2017. Loan was with Navient, refi with SoFi. Navient 1098-E shows high amount for interest paid due to SoFi's payoff. How to reflect on taxes?

The 1098-E reflects funds that were paid by SoFi when they paid off the original loan. I imagine that I shouldn't be getting an interest deduction for funds paid by SoFi.

Unfortunately, you are still limited by the amount of $2,500 per year, no mater the amount paid.

How much can I deduct?

• You may deduct the lesser of $2,500 or the amount of interest you actually paid during the year.
• The deduction is gradually reduced and eventually eliminated by phaseout when your modified adjusted gross income (MAGI) amount reaches the annual limit for your filing status.
• For more information about the student loan interest deduction and how your MAGI affects the deduction amount, refer to IRS Publication 970.
  

Hi Coleen, this doesn't actually answer my question. My question is relates to the fact that I didn't pay all the interest reflected in my 1098-E. It was paid on my behalf by SoFi, the lender with whom I refinanced. As I pay off the loan with SoFi, the interest paid will be deductible. I imagine that the IRS wouldn't like for me to be taking the interest deduction twice -- once when the loan was refinanced and again when I paid down the refinanced loan.

Enter the information from the 1098-E exactly as it comes to you. You can't change amounts on the official tax reporting form. If you fell it is inaccurate, you can call the issuer and request a corrected form.