1098-E Question

[Luscher]

If you where in school last year at all (idk your age of if you where or not) then you can get a $4000 credit instead of the $2500 income deduction. Turbo Tax automatically finds it for you if you qualify.

credit>deduction

[dman23]

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@Luscher wrote:
If you where in school last year at all (idk your age of if you where or not) then you can get a $4000 credit instead of the $2500 income deduction. Turbo Tax automatically finds it for you if you qualify.

credit>deduction

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You ought to recheck your facts because you're wrong.

[Peter1142]

It is a $2500 credit or a $4000 deduction... see the irs pub 970 https://www.irs.gov/publications/p970/ch06.html

Unfortunately my wife finished college several years ago.

[dman23]

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@Peter1142 wrote:

It is a $2500 credit or a $4000 deduction... see the irs pub 970 https://www.irs.gov/publications/p970/ch06.html

Unfortunately my wife finished college several years ago.

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I don't need the link, thanks. I realize now that I think your confusing what this thread is about. It is about student loan interest deduction. The lender reports student loan interest on Form 1098-E. In general, you can deduct up to $2,5000 in student loan interest.

What you seem to be referring to is the Tuition and Fees Deduction and the American Opportunity Credit. In general, with the Tuition and Fees Deduction you can get a deduction of up to $4,000 in qualfied education expenses. In general, with the American Opportunity Credit you can receive a credit of up to $2,500 in qualified education expenses.

That should clear things up.

[Peter1142]

I am the one who started this thread. My response was to the previous poster. I understand it fine.

[dman23]

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@Peter1142 wrote:

I am the one who started this thread. My response was to the previous poster. I understand it fine.

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My mistake. Sorry about that.