Education

Yes, qualifying educational expenses paid with student loans funds count as being paid out-of-pocket. You can claim an education credit based on these expenses if you qualify otherwise. Please view this TurboTax FAQ to see the qualifications for claiming an education credit. You do not pay interest on the student loan until you start repaying the balance. You can claim educational expenses without Form 1098-T. The IRS does not explicitly require this form in order to claim an education credit. Please follow the directions below to enter your education expenses into TurboTax:

1. Log in and open your return
2. Click the search field and type 1098-T
3. Click the Jump To link that in the search results
4. You should land on the screen where you can enter your student and Form 1098-T information.
5. On the screen that asks if you received Form 1098-T answer No to proceed with the interview and enter the required tuition and fees you paid.