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emc011075
emc011075, Tax adviser
Category: Tax
Satisfied Customers: 2300
Experience:  IRS licensed Enrolled Agent and tax instructor
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In 2006, I became eligible Security because of disability. I

Customer Question

In 2006, I became eligible for Social Security because of disability. I was in Pharmacy school prior to that and had a strokes and had to drop out. I thought all my school loans had been discharged, but it turn out a couple with Well Fargo did not. They were federal loans. In 2014 after submitting these loans for discharged, they were found to be dischargeable. I received a 1098-E Student Loan Statement showing tax year 2014. I did not have to pay taxes on the other loans that were discharged. The 1098-E did not say the loans were taxable as income, are they?
Submitted: 9 months ago.
Category: Tax
Expert:  emc011075 replied 9 months ago.

Hi. My name is ***** ***** I will be happy to help you.

1098E is to report student loan interest - a deduction, not an income. It looks like the government paid off the Wells Fargo, including some interest. Because you didn't pay off the loans yourself, you are really not entitled for deduction. And gain, this is not a reportable income.

Expert:  emc011075 replied 9 months ago.

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