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10439: 1098-E Student Loan Interest Deduction

1040 Individual Data Entry

I have interest from a student loan reported on a 1098-E.  Where can I enter that in the software?

There is no separate 1098-E screen in Drake Tax. Deductible interest from a student loan can be entered directly on screen 4 Adjustments, line 20 (line 33 in Drake18 and prior).

To take the deduction, the taxpayer/spouse has to meet all of the following requirements:

  • Paid interest in 20YY on a qualified student loan (where YY is the tax year),
  • Filing status is any status except Married Filing Separately, 
  • Legally obligated to pay interest on a qualified student loan,
  • Not claimed as a dependent on another taxpayer's 20YY tax return,
  • Modified AGI is less than the threshold amounts.
    • For 2020: $85,000 if Single, Head of Household, or Qualifying Widow(er); or $170,000 if Married Filing Jointly. Phase-out begins at MAGI greater than $70,000 and $140,000 respectively. 

If the amount you enter on screen 4 does not flow to Form 1040, review Wks SLID in View Mode of the return. Wks SLID provides the calculation results for the deduction. If the Wks SLID is not produced, it's likely that the taxpayer does not qualify for the deduction. 

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