Author Topic: Tax Return Question Regarding Student Loan Interest and Sofi Refinance  (Read 1486 times)

dcozad999

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Hi all. Need some advice or really just an explanation.

We started paying on my wife's student loan last year and in November we did a refi with Sofi.

I went into Sofi and then Navient and downloaded the 1098E forms. Here's the thing. The Navient 1098E lists ALL the interest that had accumulated on the loan over the years she was in school. Since Sofi paid it off and assumed the loan I guess that is accurate. The problem is the tax software wants you to enter the numbers from the 1098E and I did not pay even close to that amount of interest.

Do I enter the amount on the 1098E or do I enter the amount (of interest) I actually paid Navient myself?

Thank you for the help.

Simply827

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I too have received inflated 1098E statements from Navient. I entered the amount stated on the 1098E on my taxes. The deduction is only up to $2500, and I indeed did pay more than that in interest, so I didn't bother looking through my statements. If you really feel conflicted about it, go through your statements and figure out how much interest you've paid in 2015.

johnny847

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You could most likely just use the figure on the tax forms and nobody would be the wiser (and it's capped at 2500 anyways so it doesn't look from your tax return like you paid a ton of interest just this year). It's not my place to tell you what to do, but as stated above, the right way to do this is to figure out how much interest you actually paid.

dcozad999

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Thank you.

I'm leaning towards taking it as well. I guess I should look at it as though I borrowed the money and paid the interest myself.  Which essentially I guess I did.

All that interest is part of the principal in the new loan now anyway.