*rant* student loan interest

[linh]

blah, I had no idea private educational loans were not requried to report their interest earnings from me!!!

Stupid W-9S forms... is this pretty common knowledge? I'm not quite sure I would have ever found out unless I 1) talked to a tax advisor last year, or 2) knew someone that this happened to.

[labgeek]

Are NOT required? I thought you should have gotten 1098-E forms if it's over $x ($500, $600, something like that...)

[mugs]

I was never mailed a form, but when I logged into my Sallie Mae account I could view a letter that had the information in it. Mine was between $500 and 600, so if there's a minimum amount it's less than $600.

[labgeek]

I think they can file it at any amount... but are required to at some point. For some reason $500 or $600 is in my head.

Edit - yep it's $600...http://www.irs.gov/pub/irs-pdf/i1098et.pdf


Specific Instructions for Form 1098-E
File Form 1098-E, Student Loan Interest Statement, if you receive student loan interest of $600 or more from an individual during the year in the course of your trade or business.

The 1098-E is the form you should have received if they paid received more than $600.

The W-9S is simply the tax payer id request form.

[malachitecat]

Are NOT required? I thought you should have gotten 1098-E forms if it's over $x ($500, $600, something like that...)

The minimum amount is $600. Although, I've been processing tax returns over the last couple of weeks with $100-200 on 1098-E. If it is under $600 I believe is it up to the lender whether to send you a statement or not.

[linh]

well, my interest is $550 ish or so... but their FAQ clearly states they won't report it unless I submit the W-9S form by the end of the year I'm trying to claim for (so now, I'm SOL for 2005). They make no mentions of any minimum to hit for them to report anything.

[labgeek]

You do not have to have a 1098-E to claim the interest (see here (http://www.irs.gov/publications/p970/ch04.html)).

It'll take more work on your part though - See the "Allocating Payments Between Interest and Principal" section.

[linh]

well, actually, they emailed me and told me the interest that was paid, but not reported.

[malachitecat]

well, actually, they emailed me and told me the interest that was paid, but not reported.

Then claim that amount and file the email with your taxes as support in case you are ever audited.