The 1098-E form is used to determine the amount of interest you can deduct. If you meet the following requirements, you may be eligible to deduct up to $2,500 in student loan interest from the base amount of your taxable income.
You are legally obligated to pay the interest, as it is your responsibility and not another’s
You do not file a return as Married, filing Separately.
You aren’t claimed as a dependent on anyone else’s tax return (also applies to your spouse if you file a joint return
Your income falls below the threshold of $65,000 for Single, and $130,000 for Married taxpayers.
You aren’t required to itemize deductions if you want to claim student loan interest. However, you must file a 1040 or 1040A, as student loan interest deductions aren’t available on a Form 1040EZ.