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How to prepare Form Instruction 1098-E & 1098-T

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About Form Instruction 1098-E & 1098-T

Form 1098-E and 1098-T are tax forms used for reporting educational expenses and student loan interest payments to the Internal Revenue Service (IRS). Both forms are important for individuals who have incurred these expenses and are seeking certain tax benefits. 1. Form 1098-E: This form is used to report the amount of interest paid on qualified student loans during the tax year. The lender or loan servicer is responsible for preparing and providing this form to the borrower. The individual who needs this form is anyone who has paid interest on a qualified student loan throughout the year and wants to claim a deduction for the interest paid on their federal income tax return. 2. Form 1098-T: This form is used by eligible educational institutions to report qualified tuition payments and other related expenses made by the student or their parents during the tax year. It provides information about the amount of qualified education expenses paid and any scholarships or grants received. Students or their parents may need this form to claim education-related tax credits such as the American Opportunity Credit or the Lifetime Learning Credit. It is also used by educational institutions to meet their reporting requirement under the IRS guidelines. Both forms, 1098-E and 1098-T, are important for individuals who want to take advantage of the tax benefits associated with education expenses and student loan interest deductions. It is advisable to keep records and ensure the accurate reporting of these expenses on an individual's tax return.

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