Key Takeaways
- The reporting threshold for Form 1098-E is $600 or more in student loan interest per borrower per calendar year..
- Form 1098-E Box 1 must include capitalized interest and loan origination fees made on or after September 1, 2004.
- The IRS 1098-E due date for furnishing borrower copy is February 1, 2027. The eFile deadline is March 31, 2027.
What Kind of Payment Does Form 1098-E Report?
The first step to understanding how to file Form 1098-E is knowing whether the requirement applies to you. This form is used to report $600 or more in student loan interest received from a borrower during the year.
According to the Form 1098-E filing requirements, if you receive $600 or more in student loan interest from an individual borrower in a year, in the course of a trade or business, you must file.
The Form 1098-E threshold applies per borrower, not per loan. And the student loan interest statement filing responsibility falls on the lender or servicer.
Filers include financial institutions, governmental units and their agencies, educational institutions, and any other person who collects qualifying student loan interest.
When more than one party is connected to a loan, only the first individual to receive the interest payment files. Before reporting qualified student loan interest, make sure the loan meets the IRS requirement for a qualified student loan
The Loans and Payments That Belong on Form 1098-E
A loan is considered reportable for 2026TY only if it is a qualified student loan under IRS rules. For student loan to be considered qualified as per Form 1098-E rules, the loan must be either:
- Subsidized, guaranteed, financed, or treated as a student loan under a federal, state, local government, or postsecondary educational institution program (or)
- Certified by the borrower as used solely for qualified higher education expenses, which is often documented using Form W-9S.
| Report on Form 1098-E | Do Not Report on Form 1098-E |
|---|---|
| Qualified student loan interest received in a year | Interest on personal or mixed-use loans |
| Capitalized interest made on or after September 1, 2004 | Interest on revolving accounts unless the borrower certifies all proceeds were used for qualified higher education expenses |
| Loan origination fees for loans made on or after September 1, 2004, that represent charges for the use or forbearance of money | Interest on loans made under a qualified employer plan |
Information to Collect Before Filing Form 1098-E
Having the right data is essential in order to learn how to file Form 1098-E without any mistakes. For each borrower, collect:
- The borrower’s legal name, TIN, and mailing address
- Total student loan interest received during the calendar year
- Information needed to confirm that the debt is a qualified student loan
You can use Form W-9S to collect the borrower’s TIN and loan certification, but it is optional. Filers can also use loan applications and financial aid forms for the same purpose.
Form 1098-E Pre-Filing Checklist:
- Calculate the borrower’s total interest
- Confirm the amount meets the $600 Form 1098-E threshold
- Verify the borrower TIN and legal name using TIN match
- Check whether Box 1 must include capitalized interest or loan origination fees
- Decide whether to file one form after aggregating the borrower’s qualifying loans or use separate forms per loan
How to Accurately File Form 1098-E
Filer section
Enter the name, address, and TIN of the filer exactly as used on the filer’s information return. Use the same name and address on Form 1096 if paper filing.
Borrower section
Enter the borrower’s legal name, address, and TIN as they appear in the loan records.
Box 1: Student Loan Interest Received by Lender
Enter the total student loan interest received from the borrower. For loans made on or after September 1, 2004, Form 1098-E Box 1 must include the capitalized interest and loan origination fees treated as charges for the use or forbearance of money.
Box 2: Checkbox
Check Box 2 when qualifying pre-September 1, 2004, fees or capitalized interest are not included in Box 1.
| Form Section | What Is Reported There |
|---|---|
| Filer’s section | Name, address, TIN |
| Borrower’s section | Name, address, TIN |
| Box 1 | Student loan interest received (include required capitalized interest and qualifying loan origination fees) |
| Box 2 | Checkbox only for pre-2004 condition |
Form 1098-E Filing Deadlines for Tax Year 2026
All Form 1098-E filing requirements for tax year 2026 are due by February and March 2027. When a deadline falls on a weekend or legal holiday, it moves to the next business day.
| Action | Due Date |
|---|---|
| Furnish borrower copy (Copy B) | February 1, 2027 |
| File with the IRS on paper | March 1, 2027 |
| File with the IRS electronically | March 31, 2027 |
Paper Vs Electronic Filing Workflow: Which Option Should You Use?
Student loan interest statement filing follows one of two paths depending on your total return volume. Understanding how to file Form 1098-E on paper versus electronically starts with the 10-return rule.
If you file 10 or more information returns in aggregate across all form types, 1098-E electronic filing is required.
| Paper Filing | Electronic Filing |
|---|---|
| Use the official IRS scannable Copy A only. Do not use self-printed copies. | Submit through the IRIS portal or use an IRS-authorized platform like 1099Online. |
| Furnish Copy B to the borrower by February 1, 2027. | Furnish Copy B to the borrower by February 1, 2027. |
| Mail Copy A to the IRS by March 1, 2027. | File with the IRS by March 31, 2027. |
| Include Form 1096 as a transmittal document. | Save your submission confirmation and acceptance records. |
Form 1098-E Filing Errors That Could Become Compliance Risks
Most qualified student loan interest reporting errors come from classification problems and incomplete borrower records.
- Reporting interest on nonqualified or mixed-use loans
- Failing to aggregate interest by borrower before checking the $600 threshold
- Omitting required capitalized interest or loan origination fees from Box 1 for post-September 1, 2004, loans
- Using incomplete or unverified borrower TIN and name data
- Missing the 1098-E deadline 2027 for furnishing the borrower statement
- Filing on paper when the 10-return threshold requires 1098-E electronic filing and there is no waiver
Reduce the risk of noncompliance by completing the following steps:
- Collect borrower TINs and verify them using TIN match
- Track interest by borrower throughout the year
- Reconcile Box 1 totals before year-end filing
- Keep proof of borrower statement delivery and IRS submission
FAQs
1. Who must file Form 1098-E?
Form 1098-E must be filed by any person or entity that receives $600 or more in student loan interest from an individual during the year, in the course of a trade or business.
2. What is the threshold for Form 1098-E for tax year 2026?
The Form 1098-E threshold is $600 or more in student loan interest from one borrower during calendar year 2026, applied per borrower
3. What goes in Form 1098-E Box 1?
Form 1098-E Box 1 reports total student loan interest received during the year. For loans on or after September 1, 2004, it must also include capitalized interest and origination fees treated as interest
4. What is Form W-9S used for?
Form W-9S is an optional form used to collect the borrower’s TIN and student loan certification.
5. Does the 10-return eFile rule apply to 1098-E filers?
Yes. if there are 10 or more information returns in aggregate across all form types, for returns filed on or after January 1, 2024, electronic filing is required.
File Form 1098-E with 1099Online
Import borrower data in bulk, deliver recipient copies by mail or PDF, and transmit directly to the IRS.