10439: 1098-E Student Loan Interest Deduction

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 21 in Drake21 and future
• line 20 in Drake20 and Drake19
• 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. See the 1040 Instructions for year-specific MAGI threshold amounts. 

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. 

For more information, see:

• IRS 1040 Instructions: Form 1040 Instructions.
• Publication 970, Tax Benefits for Education: Publication 970.