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February 20, 2025
Question

Will I get credit for the 3 different 1098-E student loan providers. Turbo Tax is only stating the amount from 1. Why?

  • February 20, 2025
  • 1 reply
  • 0 views
I could only take 1 loan via Federal Loans and took a 2nd via Discover. The federal loan was sold last year to Mohela. I now have three 1098-E forms to enter in Turbo Tax. The wrap up is only quoting 1 as lowering my income. Why?

    1 reply

    KrisD15
    February 20, 2025

    It depends. 

    Only 2,500 interest can be claimed per tax year, and that can be reduced based on your income. 

    If only part of the interest is needed to "zero-out" your income, that's all you can claim. 

    Were all three loans taken out solely for education expenses? 

     

    Do any of these reasons make sense in your situation? 

    If not, please continue the question and give any additional details you think may be useful. 

     

    According to the IRS:

    “, if your MAGI is less than $95,000 ($195,000 if filing a joint return), you may be allowed a special deduction for paying interest on a student loan (also known as an education loan) used for higher education. For most taxpayers, MAGI is the adjusted gross income (AGI) as figured on their federal income tax return before subtracting any deduction for student loan interest. This deduction can reduce the amount of your income subject to tax by up to $2,500.”
     

     

     

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