2007 Department of the Treasury
Internal Revenue Service
Instructions for Forms
1098-E and 1098-T
Section references are to the Internal Revenue Code unless
otherwise noted. Specific Instructions for Form 1098-E
Reminder File Form 1098-E, Student Loan Interest Statement, if you
receive student loan interest of $600 or more from an individual
General instructions. In addition to these specific instructions, during the year in the course of your trade or business.
you should also use the 2007 General Instructions for Forms
1099, 1098, 5498, and W-2G. Those general instructions The $600 threshold applies to each borrower regardless of
include information about: the number of student loans obtained by that borrower.
• Electronic reporting requirements However, you may file a separate Form 1098-E for each
• Penalties student loan of the borrower, or you may file one Form 1098-E
• Who must file (nominee/middleman) for the interest from all student loans of the borrower.
• When and where to file Who must file. File Form 1098-E if you are a financial
• Taxpayer identification numbers institution, governmental unit (or any of its subsidiary agencies),
• Statements to recipients educational institution, or any other person who receives
• Corrected and void returns student loan interest of $600 or more from an individual during
• Other general topics the year in the course of your trade or business.
You can get the general instructions from the IRS website at
If more than one person has a connection with the loan, only
www.irs.gov or by calling 1-800-TAX-FORM (1-800-829-3676).
the first person to receive the interest payment must file Form
Form W-9S. You may use Form W-9S, Request for Student’s 1098-E. For example, a loan service or collection agent
or Borrower’s Taxpayer Identification Number and Certification, receiving payments on behalf of the lender must file.
to obtain the student’s or borrower’s name, address, social
security number, and student loan certification to be used when Qualified student loan. To be reportable for 2007, a student
filing Form 1098-E or 1098-T. Use of Form W-9S is optional; loan must be either:
you may collect the information using your own forms, such as • Subsidized, guaranteed, financed, or otherwise treated as a
financial aid applications, and procedures. You may collect the student loan under a program of the Federal, state, or local
student’s or borrower’s information on paper or electronically. government, or of a post-secondary educational institution or
• Certified by the borrower as a student loan incurred solely to
Electronic submission of Form W-9S. An educational pay qualified higher education expenses. You may use Form
institution, insurer, or lender may establish a system for W-9S to obtain the certification.
students and borrowers to submit Form W-9S electronically,
including by fax. Generally, the electronic system must: Revolving accounts. Report interest paid on revolving
1. Ensure the information received is the information sent accounts, such as credit card accounts, only if the borrower
and document all occasions of user access that result in the certifies that all the loan proceeds are solely used to pay
submission. qualified higher education expenses. You do not have to verify
2. Make reasonably certain the person accessing the the borrower’s actual use of the funds. Do not report interest on
system and submitting the form is the person identified on mixed use loans.
Form W-9S. Loans under qualified plans. Do not report interest on loans
3. Provide you with the same information as the paper made under a qualified employer plan, as defined in section
Form W-9S. 72(p)(4), or under a contract purchased under a qualified
4. Be able to supply a hard copy of the electronic employer plan within the meaning of section 72(p)(5).
Form W-9S if the Internal Revenue Service requests it.
Additional information. For more information about reporting
Also, if an electronic Form W-9S is used to obtain the student loan interest, see Regulations section 1.6050S-3.
borrower’s certification that all the loan proceeds are solely
used to pay qualified higher education expenses, your Statements to borrowers. If you are required to file Form
electronic system must require, as the final entry in the 1098-E, you must provide a statement or acceptable substitute,
submission, an electronic signature by the borrower whose on paper or electronically, to the borrower. For more information
name is on Form W-9S. The signature authenticates and about the requirements to furnish a statement to the borrower,
verifies the submission. See Announcement 98-27, which is on see part M in the 2007 General Instructions for Forms 1099,
page 30 of Internal Revenue Bulletin 1998-15 at www.irs.gov/ 1098, 5498, and W-2G.
pub/irs-irbs/irb98-15.pdf. Recipient’s/lender’s name, address, and telephone number
Electronic/Magnetic media reporting. For Forms 1098-E and box. Enter the name, address, and telephone number of the
1098-T, you are required to file magnetically or electronically if filer of Form 1098-E. Use this same name and address on Form
filing 250 or more returns. See part F in the 2007 General 1096, Annual Summary and Transmittal of U.S. Information
Instructions for Forms 1099, 1098, 5498, and W-2G for more Returns.
information. Account number. The account number is required if you have
Penalties. For Forms 1098-E and 1098-T, penalties may be multiple accounts for a recipient for whom you are filing more
imposed for failure to file or failure to furnish correct forms. than one Form 1098-E. Additionally, the IRS encourages you to
However, under certain circumstances, the penalties may be designate an account number for all Forms 1098-E that you file.
waived. See part O in the 2007 General Instructions for Forms See part L in the 2007 General Instructions for Forms 1099,
1099, 1098, 5498, and W-2G for more information. 1098, 5498, and W-2G.
Cat. No. 27990J
Box 1. Student Loan Interest Received by • Charges and fees for room, board, insurance, transportation,
Lender and similar personal, living, or family expenses.
Enter the interest you received on a student loan(s) during the Academic credit. Academic credit is credit awarded by an
calendar year. For loans made on or after September 1, 2004, eligible educational institution for the completion of course work
you are required to include loan origination fees and/or leading to a post-secondary degree, certificate, or other
capitalized interest in box 1. See Regulations section 1.221-1(f). recognized post-secondary educational credential.
Example. Student A, a medical doctor, takes a course at
Box 2. Checkbox University X’s medical school. Student A takes the course to
Check this box if loan origination fees and/or capitalized interest fulfill State Y’s licensing requirement that medical doctors
are reported in box 1. attend continuing medical education courses each year.
Student A is not enrolled in a degree program at University X
and takes the medical course through University X’s continuing
Specific Instructions for Form 1098-T professional education program. University X does not award
File Form 1098-T, Tuition Statement, if you are an eligible Student A credit toward a post-secondary degree on an
educational institution. You must file for each student you enroll academic transcript for the completion of the course but gives
and for whom a reportable transaction is made. Also, if you are Student A a certificate of attendance upon completion.
an insurer, file Form 1098-T for each individual for whom you University X is not required to file Form 1098-T for the course
made reimbursements or refunds of qualified tuition and related taken by Student A.
expenses. Academic period. You must file Form 1098-T for each student
who is enrolled in your institution for any academic period (for
Exceptions. You do not have to file Form 1098-T or furnish a example, semester, trimester, or quarter) in 2007. Determine
statement for: your enrollment for each period under your own rules or use
• Courses for which no academic credit is offered, even if the one of the following dates:
student is otherwise enrolled in a degree program; • 30 days after the first day of the academic period,
• Nonresident alien students, unless requested by the student; • A date during the period when enrollment data must be
• Students whose qualified tuition and related expenses are collected for purposes of the Integrated Postsecondary
entirely waived or paid entirely with scholarships or grants; and Education Data System administered by the Department of
• Students for whom you do not maintain a separate financial Education, or
account and whose qualified tuition and related expenses are • A date during the period when you must report enrollment
covered by a formal billing arrangement between an institution data to the state, to your governing board, or to some other
and the student’s employer or a governmental entity, such as external governing body.
the Department of Veterans Affairs or the Department of
Defense. Additional information. For more information about reporting
on Form 1098-T, see Regulations section 1.6050S-1. Also see
Who must file. You must file Form 1098-T if you are an Notice 2006-72 for guidance in a question and answer format
eligible educational institution. An eligible educational institution on the information reporting requirements for Form 1098-T.
that is a governmental unit, or an agency or instrumentality of a Notice 2006-72 is on page 363 of Internal Revenue Bulletin
governmental unit, is subject to the reporting requirements of 2006-36 at www.irs.gov/pub/irs-irbs/irb06-36.pdf.
Form 1098-T. A designated officer or employee of the
governmental entity must satisfy the reporting requirements of Statements to students. If you are required to file Form
Form 1098-T. 1098-T, you must provide a statement or acceptable substitute,
on paper or electronically, to the student. For more information
Eligible educational institutions may choose to report about the requirements to furnish a statement to each student,
payments received, or amounts billed, for qualified tuition and see part M in the 2007 General Instructions for Forms 1099,
related expenses. The eligible educational institution must use 1098, 5498, and W-2G.
the same reporting method for all calendar years unless the IRS Student’s address. In the student’s address box of Form
grants permission to change the reporting method. For 1098-T, enter the student’s permanent address. That is, enter
information on how to obtain automatic consent to change your the student’s home or other long-term address where he or she
reporting method, see box 3 on page ET-3. can receive forwarded mail. You may use a temporary address
If another person receives or collects payments of qualified only if you do not know the permanent address.
tuition and related expenses on your behalf, the other person Information contact and service provider. You must provide
must file Form 1098-T. However, if the other person does not your name, address, and telephone number. In addition, you
possess the information necessary to comply with the reporting may include information on a third-party service provider who
requirements of Form 1098-T, then you must satisfy the filed the form or who may answer questions about the
reporting requirements of Form 1098-T. statement. Enter the service provider’s information in the box
Also, if you are an insurer engaged in a trade or business of below the student’s name and address.
making refunds or reimbursements of qualified tuition and You must provide the telephone number for the
related expenses, you are required to file Form 1098-T. See
box 10 on page ET-3. ! information contact at the institution. Generally this is an
CAUTION administrative office or department. Do not provide the
Eligible educational institution. An eligible educational institution’s general telephone number.
institution is a college, university, vocational school, or other Account number. The account number is required if you have
post-secondary educational institution that is described in multiple accounts for a recipient for whom you are filing more
section 481 of the Higher Education Act of 1965 as in effect on than one Form 1098-T. Additionally, the IRS encourages you to
August 5, 1997, and that is eligible to participate in the designate an account number for all Forms 1098-T that you file.
Department of Education’s student aid programs. This includes See part L in the 2007 General Instructions for Forms 1099,
most accredited public, nonprofit, and private post-secondary 1098, 5498, and W-2G.
institutions.
Qualified tuition and related expenses. Qualified tuition and Box 1. Payments Received for Qualified Tuition
related expenses are tuition and fees a student must pay to be and Related Expenses
enrolled at or attend an eligible educational institution. The If you use this method of reporting, enter the amount of
following are not qualified tuition and related expenses: payments received for qualified tuition and related expenses
• Amounts paid for any course or other education involving from any source during the calendar year. The amount reported
sports, games, or hobbies unless the course or other education is the total amount of payments received less any
is part of the student’s degree program or is taken to acquire or reimbursements or refunds made during the calendar year that
improve job skills. relate to the payments received for the same calendar year.
ET-2
Box 2. Amounts Billed for Qualified Tuition and Box 6. Adjustments to Scholarships or Grants
Related Expenses for a Prior Year
If you use this method of reporting, enter the amounts billed Enter the amount of any reduction to the amount of
during the calendar year for qualified tuition and related scholarships or grants that were reported for any prior year after
expenses. The amount reported is the total amount billed less 2002.
any reductions in charges made during the calendar year that
relate to the amounts billed for the same calendar year. Box 7. Checkbox for Amounts for an Academic
Period Beginning in January through March
Box 3. Checkbox for Change of Reporting of 2008
Method Check this box if any payments received, or amounts billed, for
Check this box if you have changed your method of reporting qualified tuition and related expenses reported for 2007 relate
(payments received or amounts billed). You have changed your to an academic period that begins in January through March
method if the method you are using for 2007 is different than of 2008.
the method you used for 2006.
In general, you must make a written submission to the IRS at
Box 8. Check if at Least Half-Time Student
least three months before the due date of the returns for the Check this box if the student was at least a half-time student
year of the change. To change your method of reporting for during any academic period that began in 2007. A half-time
2008, you must make the submission no later than November student is a student enrolled for at least half the full-time
28, 2008, if you file your returns on paper (or December 31, academic workload for the course of study the student is
2008, if you file electronically). For additional requirements, see pursuing. Your institution’s standard for a half-time student work
Rev. Proc. 2005-50 which is on page 272 of Internal Revenue load must equal or exceed the standards established by the
Bulletin 2005-32 at www.irs.gov/pub/irs-irbs/irb05-32.pdf. Department of Education under the Higher Education Act and
set forth in 34 C.F.R. section 674.2(b).
Box 4. Adjustments Made for a Prior Year
Box 9. Check if a Graduate Student
Payments received. Enter reimbursements or refunds of Check this box if the student was a graduate student. The
qualified tuition and related expenses made during the calendar student is a graduate student if the student was enrolled in a
year that relate to payments received that were reported for any program or programs leading to a graduate-level degree,
prior year after 2002. graduate-level certificate, or other recognized graduate-level
Amounts billed. Enter any reductions in charges made for educational credential.
qualified tuition and related expenses made during the calendar
year that relate to amounts billed that were reported for any Box 10. Insurance Contract Reimbursements or
prior year after 2002. Refunds
Box 5. Scholarships or Grants If you are an insurer, enter the total amount of reimbursements
or refunds of qualified tuition and related expenses that you
Enter the total amount of any scholarships or grants that you made for the student during 2007.
administered and processed during the calendar year for the
payment of the student’s costs of attendance. However, see
Exceptions on page ET-2.
ET-3