What Turbo Tax Do I Use to File a 1098-E & a 1099-R?

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Individuals receive 1098 and 1099 forms as informational returns from companies. 1098-E forms are used for educational loan reporting, and 1099-R forms designate retirement-related payments. TurboTax software enables taxpayers to enter these informational returns and file taxes electronically. For these specific returns for education and retirement, users may not be able to file a simple form; however, they can use any other edition of TurboTax to take advantage of tax savings.

1098-E

  • The 1098-E form reports student loan interest greater than $600 earned in the previous year. Government agencies, financial institutions and educational organizations must file 1098-E form to each borrower of a student loan. Interest accrued from credit cards or lines of credit that are certified by individuals to be used exclusively for qualified higher education payments may also be reported on a 1098-E form for each year they total at least $600.

1099-R

  • Companies issue 1099 informational forms to document non-employee compensation or income. Payments from retirement accounts, some pensions and profit-sharing plans are considered income, and are reported on 1099-R forms for distributions. 1099 forms include the issuing company's taxpayer ID, the recipient's name and tax information, total payments and any taxes withheld, such as federal taxes and penalties for early withdrawal of funds from a retirement plan. Some organizations, such as the California Teachers State Association, issue separate 1099-R forms for each type of benefit payment issued.

TurboTax Editions Using These Forms

  • TurboTax provides a variety of options for users, ranging from a free online version for easy filing to the "Home and Business" edition. The free, online edition prepares the basic 1040EZ form for users that use the standard deductions and have W-2 and 1099 forms for income reporting. According to TurboTax, 1099 forms may be entered in the online version. However, since the 1098-E form is a tax deduction for interest on a loan, users must itemize deductions in order to take advantage of this credit. According to TurboTax, users can enter 1098-E information using the Basic, Deluxe, Premier or Home and Business edition.

Where to Enter Information

  • Since 1098-E information designates an education loan, it is a tax deduction. In the federal tax section of the program, select "Deductions and Credits" and find the "Education" sub-topic to enter the student loan interest.

    To enter 1099-R information, users can select "Tools" from the menu and choose "Topics and Forms." Type "1099-r" to access the section to determine the type of distribution and enter the information on the form.

References

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