Are you a financial institution, educational institution, or any other person who has received student loan interest of $600 or more from an individual? Learn how to file Form 1098-E and what other information you need to provide to borrowers in this article.
What is Form 1098-E?
Form 1098-E, also known as the Student Loan Interest Statement, is a document that must be filed when a trade or business receives interest from an individual student loan that is equal to or more than $600. It can be filed separately for each individual loan or combined into one form per borrower. It must be reported by financial institutions, governmental units, educational institutions, and anyone else who receives student loan interest. It must be reported according to the loan’s status as either of the outlined qualifications and certain information must be included, such as the borrower’s name, address, and truncated tax identification number. Additionally, the recipient’s/lender’s name, address, and phone number should be present, as well as an account number for multiple accounts for one borrower. Regulations section 1.6050S-3 must be adhered to and a statement must be provided to the borrower.
IRS Form 1098-E – Who Needs to Fill It Out?
IRS FORM 1098-E must be filled by any financial institution, governmental unit, educational institution, or any other person who receives student loan interest payments of at least $600 during the year from an individual in the course of their trade or business. The $600 threshold applies to each borrower, though a lender may file separate Forms 1098-E for each loan of the borrower if they choose. Those who have made a loan under qualified employer plans must not file the form, and those with revolving accounts must certify all loan proceeds are solely used for qualified higher education expenses before filing the form. All Form 1098-E filers must also send the borrower a statement, with the option to receive it electronically.
Step-by-Step: Form 1098-E Instructions For Filling Out the Document
To properly fill out Forms 1098-E and 1098-T, one must be aware of the applicable thresholds and regulations. All filers must enter the recipient/lender’s name, address, and telephone number so that it is in line with the information provided on Form 1096. Additionally, if applicable, the filer must enter the account number for multiple accounts for the recipient. Furthermore, if the student loan interest received is $600 or more from an individual, the filer must complete different sections for Forms 1098-E and 1098-T, including designating mixed use loans and loans under qualified plans while inputting any Revolving accounts’ interest paid. Lastly, filers are encouraged to incorporate the global consent process, which must meet all regulations, when providing the option to consent to receive Form 1098-E through electronic delivery.
Below, we present a table that will help you understand how to fill out Form 1098-E.
| Form Name | Information Required | Details |
|---|---|---|
| Form 1098-E | Instructions for Forms 1098-E and 1098-T | Instructions for properly filling out Forms 1098-E and 1098-T, including details on thresholds, regulations, and electronic delivery options. |
Do You Need to File Form 1098-E Each Year?
Depending on your individual circumstances, you may need to file Form 1098-E for the year. Financial institutions, governmental units, educational institutions, or any other person who receives student loan interest of $600 or more from an individual during the year in the course of their trade or business must file it. If more than one person has a connection with the loan, only the first person to receive the interest payment must file. Additionally, if the loan being reported is from a qualified employer plan, you do not need to file Form 1098-E. Check out the 2023 General Instructions for Certain Information Returns for additional information.
Download the official IRS Form 1098-E PDF
On the official IRS website, you will find a link to download Form 1098-E. However, to make it easier for you, we are providing the link in our article, which comes directly from the official irs.gov website! Click to download: Form 1098-E
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