If you made payments on a student loan last year you might be able to claim a tax deduction for the interest. This deduction reduces your total taxable income and therefore lowers the amount of taxes you are required to pay. Payments on student loan interest is considered a tax deduction in some cases.
You must meet income and other eligibility guidelines to qualify. And if you do qualify, you can claim it even if you don’t itemize your deductions because it is a deduction adjustment to your actual income.
1098-E form If you paid $600 or more in interest in a qualified student loan over the course of the year, it will show up on this form. We will mail this form to you if you paid over $600 in interest. You can see how much interest you paid and also access tax forms within your Online Account Access.
1099-C form If you had loan relief or cancellation of $600 or more you will need to report the amount to the IRS as taxable income. We will mail this form to you if $600 or more was cancelled or forgiven. You can view your account and access tax forms within your Online Account Access.
Besides the student loan interest tax deduction there are several different tax credits that apply to higher education expenses. If you qualify, tax credits can help offset the costs of college. There are also educational savings accounts available that have tax benefits to save for college expenses. Learn more
If you have specific questions about your student loans and income taxes, please contact a tax professional or the IRS at 1-800-829-1040 or www.irs.gov
If you are having trouble accessing your information, please contact us.