Form 1098-E box 1.

When you get a 1098-E

Pub. 1099 (2026) lists Form 1098-E, Student Loan Interest Statement, as required when a lender received $600 or more of student loan interest in the course of its trade or business, due to the recipient by January 31 (the next business day if it falls on a weekend, which in 2027 is Monday, February 1). Pub. 970 says the same: an institution that received interest payments of $600 or more during the year on one or more qualified student loans must send Form 1098-E to each borrower. If you paid less than $600 on a loan, you may not get a form, but you can still deduct the interest.

The boxes

Box 1: student loan interest received by the lender

Box 1 is the interest the lender received during the calendar year. For loans made on or after September 1, 2004, the instructions say box 1 must include capitalized interest and loan origination fees that represent charges for the use or forbearance of money.

Box 2: the checkbox

Box 2 is checked when loan origination fees and capitalized interest are not included in box 1 for loans made before September 1, 2004. Pub. 970 says that for those older loans the lender is required to report only stated interest. If you paid qualifying origination fees or capitalized interest that are not on the form, you can still deduct them.

The deduction in one line

Your student loan interest deduction is generally the smaller of $2,500 or the interest you paid. It is then phased out if your modified AGI is in a range: in Pub. 970 (2025) from $85,000 to $100,000 for single, head of household and qualifying surviving spouse filers, and from $170,000 to $200,000 if you file jointly. The deduction is not available at or above $100,000 ($200,000 joint). The student, you, your spouse or your dependent must have been enrolled at least half-time at an eligible school, and the loan must have been taken out solely to pay qualified education expenses and not from a related person or a qualified employer plan.

Worked example

A single borrower has two 1098-Es showing $1,850 and $1,100, and also paid $200 of qualifying interest on a small loan that did not generate a form. Total interest is $3,150. The deduction before the income phase-out is $2,500 because the cap is lower. If modified AGI is $92,500, the deduction is cut by half, because $92,500 is halfway through the $85,000 to $100,000 range, leaving $1,250. The calculator linked on this page runs that step.

If the form is wrong or missing

Look first for the lender’s online account, which usually has the form. If box 1 omits interest you paid, you can still deduct what you can document. Pub. 970 notes an institution may ask you for Form W-9S or a similar statement and that you can use the form to certify the loan was taken out solely to pay qualified education expenses. Keep servicer statements showing interest paid.

Sources

• Instructions for Forms 1098-E and 1098-T (2026) — boxes 1 and 2
• Publication 970 (2025), chapter 4 — $2,500 cap, income limits, who qualifies
• Publication 1099 (2026) — $600 filing level and January 31 due date

Figures and rules above were retrieved November 2026 from the IRS pages listed. Income limits are from Publication 970 (2025), the latest edition read; confirm the limits for the year you file.

Frequently asked questions

What is box 1 on Form 1098-E?

Box 1 is the student loan interest the lender received from you during the calendar year. For loans made on or after September 1, 2004 it includes capitalized interest and loan origination fees that represent charges for the use or forbearance of money.

What if I paid less than $600?

Lenders must send a 1098-E when they received $600 or more of interest. If you paid less you may get no form, but you can still deduct qualifying interest you paid.

What does box 2 mean on Form 1098-E?

Box 2 is checked if loan origination fees and capitalized interest are not reported in box 1 for loans made before September 1, 2004. You can still deduct qualifying amounts that are not on the form.

How much student loan interest can I deduct?

The smaller of $2,500 or the interest you paid, before the income phase-out. In Pub. 970 (2025) the deduction phases out between $85,000 and $100,000 of modified AGI, or $170,000 and $200,000 if filing jointly.

Does a 1098-E list principal payments?

No. It reports interest only. Principal payments are not deductible.