Contents: Difference between 1098-E and 1098-T
IRS tax forms are used for taxpayers and tax-exempt establishments to report financial data to the Internal Revenue Service (IRS) of the United States. 1098-E and 1098-T are the series of the information returns. Amongst the several version of the form 1098, 1098-E is about Student Loan Interest Statement, reports interests the taxpayer paid on student loans that might succeed as an modification to income whereas 1098-T is about Tuition Statement, reports either payments acknowledged or amounts billed for qualified tuition and related expenses that might permit the taxpayer for an modification to income or a tax credit.
What is 1098-E?
It is for the interest paid on competent student loans. Student loan interest can be deductible on federal tax returns, but receiving a 1098-E doesn’t always mean you’re eligible to take the presumption.
What is 1098-T?
It is for the particulars tuition and related fees during the year. Form 1098-T also reports any scholarships or grants you conformist through the school that may diminish your allowable deduction or credit.
Key Differences between 1098-E and 1098-T
- 1098-E reports interest you paid on a student loan during the previous year whereas 1098-t tells you how much you paid in tuition for post-secondary education.
- The organization that transmits your student loan must send you a copy of Form 1098-E by January 31 if you paid at least $600 in concentration. Even if you paid less than that, you may still get a form whereas schools must provide a 1098-T to any student who has paid tuition or related reportable expenses by January 31 subsequent the year in which the payments were made.
- When it comes to the treatment the 1098-T form offers a wide range of arrangement as compare to 1098-E.
- The account number is required if you have multiple accounts for a beneficiary for whom you are filing more than one Form 1098-T. The account number is required if you have numerous accounts for a recipient for whom you are filing more than one Form 1098-E.