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How to report interest paid on private student loans

I have private student loans, which I paid interest on all year. I had a woman who did my taxes last year that assured me I would get tax breaks for this, but she moved. When I look this up, including on Intuit's website, it says yes, you can: "you can deduct interest on both federal and private loans", and that the deduction is limited to $2,500. For private loans, everything I've found says this should go in "part II" of Form 1040 Schedule 1.

However, when doing the "Deductions & Credit"section on TurboTax, it only offers the option for Form 1098-E for paid student loan interest - which only applies to Federal loans. I can not find any other option that lets me fill in the deduction for my private student loans, despite their website saying I can. What am I missing? Can anyone tell me where to put this in? I'd really rather not leave it out if it would give me a tax break. Thanks all!

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1 Reply
AmyC
Expert Alumni

How to report interest paid on private student loans

You do want the deduction and you are in the right spot. Just ignore that it says 1098-E. Provided you qualify, enter your interest up to $2,500 (not the principal paid back).

 

Topic no. 456, Student loan interest deduction - IRS

 

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