OFF TOPIC – Question about 1098E
Hello everyone,
I have a quick question for anyone knowledgeable about this. If my 1098E shows around $6,000 in student loan interest reported by the lender, could this help improve my tax return? Apologies if this is a silly question, and thank you in advance for your help!
One response
Hi there!
Great question! The student loan interest you see on your 1098-E form can be beneficial when filing your taxes. You can potentially deduct up to $2,500 of student loan interest from your taxable income, which might help lower your overall tax bill and potentially increase your refund.
Keep in mind that this deduction is subject to income limits, so your eligibility might depend on your modified adjusted gross income (MAGI). If your income is below a certain threshold, you can claim the full deduction, but it phases out as your income increases.
It’s always a good idea to check with a tax professional or use tax software to ensure you’re maximizing your deductions and complying with the latest tax rules. Good luck with your filing!