How to Organize Paperwork for a Student Loan Tax Deduction

One of the most difficult aspects of taking tax deductions is keeping yourself and all your paperwork organized. Keeping your paperwork organized begins well before tax time. It's important to stay organized throughout the year so that when it's time to file your taxes, you'll have everything you need at your fingertips.

Difficulty: Moderately Easy

Instructions

1. File your form 1098-E in a safe spot. The company that services your student loan will mail you a 1098-E in January. Many student loan providers also allows clients to download this form online. The 1098-E will reflect the interest on your student loan.

2. Decide whether you want to file all your tax-related paperwork in one single file folder or whether you want to use one larger, hanging file folder and store separate folders in that one file.

3. Label all files clearly for easy retrieval. Taking a student loan tax deduction will be easier if you have everything you need in one convenient spot.

4. Use a locked filing cabinet to store your student loan paperwork if you have a lot of visitors to your home.

5. Opt for portable filing containers if you live in a small space and don't have room for a filing cabinet.

6. Keep your 1098-E form and all related student loan paperwork for up to 7 years after you file your taxes.

7. Shred all tax documents using a cross-cut shredder when you are finally ready to throw them away. This prevents identity theft criminals from finding and using the personal information on your paperwork.