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About 1098-E's at USC

1098-E

Under the 1997 Taxpayer Relief Act, beginning January 1, 1998, taxpayers who have taken loans to pay the cost of attending an eligible educational institution for themselves, their spouses or their dependents, may be eligible to deduct interest they have paid on these student loans.

Loan Types

  • University Perkins Student Loans
  • Health Profession Student Loans (HPSL)
  • Loans for Disadvantage Students (LDS)
  • Departmental Loan (Institutional Loans).
Note: Statements of interest paid on student loans with other lenders will be provided by the lender.
 
Credit

The amount of the tax credit is determined by the amount of loan interest paid. Education credits are subtracted from your tax but they are nonrefundable. This means if the credits are more than your tax, the excess is not refunded to you.

To calculate the tax credit, you must file IRS Form 8863 along with your federal income tax return. IRS Publication 970 explains which tuition and fee expenses and which payments qualify for the tax credits. It is your responsibility to determine if you qualify for either tax credit.

No USC employee may give tax advice regarding these credits.

 
Report

The 1098-E form provides the amount of interest paid during the calendar year on loans with the University of Southern California, which may qualify for the interest deduction. The 60-month repayment period has been taken into consideration, and periods of deferement and/or forbearance have been excluded if applicable.

You may be able to deduct up to $2000 in interest paid during the first 60 months of your repayment period. As of 2002, the 60 months limit has been waived. You will receive a 1098-E the following year for interest paid during the previous calendar year (ending 12/31). See IRS Publication 970 for more information. If you need assistance in determining your eligibility, please consult a qualified tax professional. USC employees are not qualified to assist you with income tax issues.

USC has contracted with our billing service to provide reporting services for loan interest via the 1098-E form. These 1098-E tax forms will be available to view and print on-line at www.ecsi.net. For questions or more information, please see ECSI's online documentation at: www.ecsi.net/1098e.

If you have any questions on your 1098-E, please send email, or call (213) 740-4077.

 
Filing

No USC employee may give tax advice regarding these credits. If you are unsure about your eligibility, please consult with a qualified tax preparer.

For information about eligibility and filing for the credits, please refer to IRS Publication 970, 'Tax Benefits for Higher Education.'

     Visit the IRS Forms & Publications Website at: http://www.irs.gov/formspubs/.

To calculate the tax credit, you must file IRS Form 8863 along with your federal income tax return. IRS Publication 970 explains which tuition and fee expenses and which payments qualify for the tax credits. It is your responsibility to determine if you qualify for either tax credit.

2009 Student Loan Interest filing information may be found at:  http://www.irs.gov/formspubs/article/0,,id=178005,00.html