Are Earnest Loans considered "Student Loans" for tax purposes?
Yes! Earnest loans are considered student loans for federal tax purposes. If you’re a current Earnest client, you may receive tax documents from Earnest if you paid interest on a student loan refinance, private student loan, received at least $600 in bonuses/incentives, or have discharged debt from us. Note that you may or may not be eligible for interest deduction depending on your individual tax situation. You should consult your tax advisor for more information. Below you can find the most commonly asked questions for the upcoming tax season.
What are the 1098-E, 1099-MISC, and 1099-C forms?
Form 1098-E is a Student Loan Interest Statement required by the IRS to issue to clients who’ve paid eligible student loan interest during the calendar year. You may be able to deduct some or even all of that interest on your federal income tax return. We recommend consulting your tax advisor if you have questions.
Form 1099-MISC is a tax form detailing the miscellaneous income you’ve received. You can expect to receive a 1099-MISC from Earnest if you’ve received $600 or more in 2022 from our student loan refinancing bonus and/or referral programs.
Form 1099-C or a "Cancellation of Debt" is a tax form detailing debt owed that has been canceled, forgiven, or discharged (i.e., bankruptcy) if you have had $600 or more in debt discharged. Please note that the IRS does not require us to provide this form when the primary borrower has had their loan discharged due to passing or being approved for Total Permanent Disability.
Will I receive a 1098-E tax form if I am a cosigner?
If you are a cosigner on a loan or have made payments towards a loan that is not in your name, you will not receive a 1098-E from Earnest. The IRS requires that we send all student loan-related tax documents to the primary borrower, regardless of who made the payments towards the loans. If you would like to receive a copy of the tax documentation for your records, please reach out to the primary borrower who should have a copy for their records. You may also submit a request for your own copy by clicking the “Get In Touch” button found at the bottom of this article. It’s important to note that the tax form sent will only be a copy of the primary borrower’s 1098-E tax form. We are not able to generate a tax form with your personal information, nor will it reflect any amount you may have paid toward the loan. We advise consulting your tax advisor regarding your eligibility to claim the interest you may have paid.
When will I receive my tax form(s)?
We’ll be sending your tax form(s) no later than January 31, 2023. We’ll be in touch via email as soon as your tax form(s) are sent. Depending on your delivery preferences, you may receive your tax form(s) electronically or by mail. If you expect to receive your tax form(s) by mail, you’ll want to allow additional mail processing time (usually 7-10 days) from January 31, 2023.
Electronic delivery (paperless) - Once you receive notice that your tax form is available, you can access and download the form(s) from your online account.
- Sign in to your Earnest account
- Select
from the left-side navigation menu and choose
- Click the downward arrow to view and download your document(s).
By mail - We’ll mail your tax form(s) no later than January 31, 2023, to the address listed on your Earnest account. We recommend checking your address on file to ensure it’s correct. Any changes to your address must be received by January 8, 2023.
To view or update your address:
- Sign in to your account, and select "Profile" from the left-side navigation menu.
- Select Account Settings from the drop-down menu.
- Select Personal from the left-hand menu.
- Review and save any changes.
How can I confirm if I’ll receive my tax form(s) by mail or electronically?
You can verify your preferred delivery method by signing into your account and clicking View Loan Details.
Select Profile in the top right corner and scroll to Delivery Preferences which will indicate if you will receive your loan, tax, and payment documents by mail or electronically.
How can I change the method my tax form(s) are delivered?
Any changes to your delivery preferences must be received no later than January 8, 2023. To update your delivery preferences sign in to your account, and select "Profile" from the left-side navigation menu.
- Select Profile in the top right corner and scroll down to select Edit. Under the Document Delivery Preferences section, select Paperless or Paper.
If I’m receiving my tax form(s) by mail, how can I verify my address?
Any changes to your address must be received no later than January 8, 2023. To view/change your address, you’ll need to:
- Sign in to your account, and select "Profile" from the left-side navigation menu.
- Select Account Settings from the drop-down menu.
- Select Personal from the left-hand menu.
- Review and save any changes.
Any further questions?
We’re here to help! You can reach our Client Happiness Team by clicking the “Get In Touch” button found at the bottom of this article.
