Where to enter interest from a student loan reported on Form 1098-E

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 on a qualified student loan,

• 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 tax return,

• Modified AGI is less than the threshold amount for that year.

If the amount you enter on screen 4 does not flow to Form 1040, review Wks SLID in View/Print 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 Form 1040 Instructions

• Publication 970, Tax Benefits for Education