Why it matters
The student loan interest deduction can lower taxable income even when the taxpayer does not itemize. The deduction has income limits, so the preparer needs the form and the taxpayer's income before applying it.
Example
A client pays interest on a qualified student loan. The lender sends Form 1098-E, and the preparer reports the deductible amount on the return, subject to the income limit.
Related terms
Questions about Form 1098-E
Is student loan interest deductible without itemizing?
Yes. The student loan interest deduction is generally claimed as an adjustment to income, not as an itemized deduction. The income limits still apply.
What if the client does not receive Form 1098-E?
The client can use the lender's annual statement or the payment records. The form is the best support, so ask the lender for a copy if it is missing.