How can I figure my student loan interest deduction on my private student loans? It was not included-1098!?

Question

Received a 1098 from Sallie Mae for my student loan interest deduction. It did not include the interest paid on my private student loans. The Sallie Mae website provided information that all of my student loans may not be eligible for the interest deduction. My interest was over $4,000.00. During a divorce ,while in college, I took student loans for living expenses, transportation, books, supplies and tuition. How do I determine the total deduction allowed? The 1098 reflects that $632.00 was reported to IRS. How do I determine if I qualify for the maximum deduction of $2500.00?

Answer 1

Contact your lender about issuing you a 1098E. You may have to certify that the expenses were for education.

Determine how much of the private loan was for qualified education expenses: tuition, room and board equivalent to what is charged at the school, books, transportation to classes. The interest on that amount is deductible up to the maximum of $2,500.

It is possible that not all of the loan is qualified for the student loan interest deduction.

You can file and take the student loan deduction without a 1098E, but you need to determine how much of the loan was for qualified expenses, and pro-rate the interest.

Answer 2

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Answer 3

Assuming the present regulations stay in effect, you could desire to have the means to deduct as much as $2,500 of student own loan pastime paid in 2011. related to the only exceptions are while you're a based, you report a married submitting separate return, or your adjusted gross earnings is in simple terms too intense. i've got not heard something popping out of Congress to signify they are even pondering changing the regulations for student own loan pastime deductions, so which you will desire to respire uncomplicated.