It is safe to say that almost all new graduating optometrists have some amount of student loan debt. Whether it’s $2,000 or $200,000, it is critical that all optometrists paying interest on loans utilize Form 1098-E.
This form allows optometrists to deduct a portion of student loan interest paid from earned income. This can help lower the amount of income you make that is subject to tax.
If a borrower made interest payments exceeding $600, the loan servicer must report interest payments to the IRS on Form 1098-E.
This holds true for each individual entity servicing a loan on your behalf. For example, if you hold a loan with two different banks and are making payments to each bank throughout the year, then come tax season, each of those banks must provide you with this particular form for tax filing purposes.
Keep in mind, if your interest payments did not reach $600.00 within the year, you may not receive a 1098-E form from your servicer.
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