What does Form 1098-E pertain to?

Form 1098-E pertains specifically to the statement of student loan interest paid. This form is important for taxpayers who have taken out student loans, as it reports the amount of interest the borrower has paid during the tax year on federally guaranteed student loans. Taxpayers can use this information to potentially deduct the interest paid on their student loans, which can lead to a lower taxable income.

The deduction for student loan interest can be beneficial because it is an above-the-line deduction, meaning it can be taken even if the taxpayer does not itemize deductions. The maximum deduction for student loan interest is $2,500, subject to income phase-out limits.

Understanding the significance of Form 1098-E helps taxpayers appropriately claim the deduction, reducing their overall tax liability. This form primarily focuses on the interest paid, distinguishing it from other educational financial documents that pertain to different aspects of educational expenses.