Form 1098

Form 1098: Mortgage Interest Statement

What is Form 1098?

Form 1098 is a tax document lenders send to homeowners and the IRS when a borrower pays $600 or more in mortgage interest during the year. It reports mortgage-related amounts you may be able to deduct on your federal tax return.

What information appears on Form 1098?

Typical items on the form include:
* Borrower’s name and taxpayer identification number (TIN) and address
* Lender’s name, TIN, and address
* Number of properties securing the mortgage
* Amount of mortgage interest paid (Box 1)
* Outstanding mortgage principal
* Refund of overpaid interest
* Mortgage insurance premiums
* Points paid on purchase of principal residence

Who receives Form 1098?

• Lenders must file Form 1098 with the IRS and send a copy to the primary mortgage borrower if interest paid is $600 or more.
• If you pay less than $600 in interest, you might not receive a Form 1098.
• You’ll receive a separate Form 1098 for each mortgage.

Rules for deducting mortgage interest

To deduct mortgage interest, you must meet IRS requirements:
* The home must be a qualified residence (main home or second home with sleeping, cooking, and bathroom facilities).
* The mortgage must be a secured debt (backed by the home).
* Deduction limits (generally):
* Interest on up to $750,000 of mortgage debt ($375,000 if married filing separately).
* For mortgages originated before Dec. 16, 2017, limits are $1,000,000 ($500,000 if married filing separately).
Note: Tax laws can change; confirm current limits before filing.

How to claim a mortgage interest deduction

1. Verify the accuracy of the information on Form 1098.
2. Find the total mortgage interest paid in Box 1.
3. File Form 1040 (or Form 1040‑SR) and report itemized deductions on Schedule A; mortgage interest is reported with other itemized deductions.
4. Compare itemizing vs. the standard deduction to determine which lowers your taxable income more.

Mortgage points

Mortgage points (fees paid to lower an interest rate) are often reported on Form 1098. Depending on circumstances, points may be deductible either in the year paid or over the life of the loan. Review IRS rules for points to determine how to claim them.

Other 1098 forms

Several related 1098 forms report different deductible or creditable payments:
* Form 1098-C — Reports donations of motor vehicles, boats, or airplanes (used by donors to claim charitable deductions).
* Form 1098-E — Reports student loan interest paid; borrowers who paid $600+ in interest receive a copy.
* Form 1098-T — Reports qualified tuition and related expenses from educational institutions; used to claim education credits or deductions.
* Form 1098-MA — Reports mortgage assistance payments (e.g., from certain housing assistance funds) and can affect the deductible mortgage interest amount.

Bottom line

If you paid mortgage interest, points, or certain mortgage-related insurance or received related assistance, Form 1098 helps document amounts that may reduce your taxable income. Keep the form, confirm its accuracy, and decide whether itemizing on Schedule A or taking the standard deduction gives the greater tax benefit.