I had a student loan consolidation and received a 1098-E. Since I did not actually pay this interest, do I still report it?

[MargaretL · Accepted solution]

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.

[beachbum2456]

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!

[BrianaMcElroy]

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. 

[AnnetteB6]

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. 

@BrianaMcElroy