didn't receive a 1098-E and received Financial Aid refunds?

Forum|Forum|5 years ago
April 3, 2021
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Didn't receive a 1098-E and received Financial Aid refunds? what do I do and whose 1040 does this go on, mine or my sons?

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xmasbaby0

Employee

Not sure what you mean by a "financial aid refund." A 1098E shows the interest paid on a student loan. Only the person who is legally responsible for paying the loan can deduct the interest paid. Did you make payments on a student loan in 2020?

STUDENT LOAN INTEREST

Only the person whose name is on the student loan and who is legally obligated to pay the loan can deduct the student loan interest. If you did not sign or co-sign for the loan you cannot deduct the interest.

You cannot deduct student loan interest if you are being claimed as someone else’s dependent, or if you are filing as married filing separately.

The student loan interest deduction can reduce your taxable income by up to $2500

There is a phaseout for the Student loan interest deduction, which means the amount you can deduct gets reduced when your modified adjusted gross income hits certain income levels and is even eliminated at certain income levels -

•If your filing status is single, head of household, or qualifying widow(er), then the phaseout begins at $65,000 until $80,000, after which the deduction is eliminated entirely.

•If your filing status is married filing joint, then the phaseout beings at $130,000 until $160,000, after which the deduction is eliminated entirely.

Enter the interest you paid for your student loan by going to Federal>Deductions and Credits>Education>Student Loan Interest Paid in 2020 (Form 1098E)

Look on your 2020 Schedule 1 line 20 to see your student loan interest deduction

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

Pursi57Author

Thank you for your answer.

No we don't have a loan, so that answers why I didn't

receive a 1098-E.

My son received refund checks from the school for (and I am guessing on this) funds not used to pay for school from either scholarships or Pell grants. The checks are made out to my son and are from a payment processing center the college uses for disbursements. My question is: does this need to be reported and on which 1040 if it is to be reported since I claim him as a dependent.