How to File a 1098-E Student Loan

File IRS Form 1098-E.

If your organization or business received interest payments on a student loan totaling more than $600 in a given year, you must file IRS Form 1098-E Student Loan Interest Statement. This form states the amount of interest the borrower paid to your organization. Borrowers use Form 1098-E to deduct the interest payments on their student loans to reduce their total tax liability. Send one copy of the completed from to the IRS, another copy the borrower and keep a copy for your records.

Instructions

1. Launch a Web browser and go to the Internal Revenue Service Online Ordering for Information Returns and Employer Returns page. (See Resources)

2. Scroll down the page until you find Form 1098-E, then enter the number of copies you want to order in the appropriate column. Also enter the number of copies of Form 1096 you need to use. Form 1096 is the transmittal document you must submit with 1098-E forms if you are filing a paper return. Click the "Add to Cart" button on the bottom of the page. Click "Checkout" and fill out the address form. The IRS mails the forms directly to your address.

3. Check the "Void" or "Corrected" check box if applicable. Enter the name, telephone number and address of your organization or business in the first box at the top left corner of the form.

4. Enter your organization's federal identification number and the borrower's Social Security number in the appropriately named boxes in the upper left corner of the form under the first box.

5. Enter the borrower's name, address and the student loan account number in the subsequent boxes.

6. Enter the amount of student loan interest your organization received from the borrower in Box 1. Place a check mark in Box 2 if the loan was prepared before Sept. 1, 2004, and the total interest payment stated in Box 1 does not include capitalized interest and/or loan origination fees.

7. Attach a copy of Form 1096 to all copies of Form 1098-E you are filing if you are submitting a paper return. Mail the forms to the IRS by first-class mail. If you are submitting more than 250 copies of Form 1098-E, you must file electronically using the IRS Filing Information Returns Electronically System website.

8. Create an account on the FIRE system website, then submit each copy of Form 1098-E to complete your filing requirement.

References

• IRS.gov: 2011 General Instructions for Certain Information Returns
• IRS.gov: 2011 Instruction for Forms 1098-E and 1098-T
• IRS.gov: Form 1098-E for Informational Purposes Only

Resources

• IRS.gov: Online Ordering for Information Returns and Employer Returns
• IRS.gov: Form 1096 for Informational Purposes Only
• IRS.gov: Filing Information Returns Electronically