What Is Form 1098: Mortgage Interest Statement?

Form 1098 is a tax document that homeowners will receive if they pay $600 or more in mortgage interest over the course of a year. Your mortgage lender will send you a copy of Form 1098 so you can prepare to file your annual taxes.

Form 1098 will include the information such as:

• Your name and 澳洲幸运5官方开奖结果体彩网:taxpayer identification number (TIN)
• Your address
• The name of your lender and its TIN
• Your lender's address
• Number of properties securing the mortgage
• Amount of mortgage interest paid
• Outstanding mortgage principal
• Refund of overpaid interest
• Mortgage insurance premiums
• Points paid on purchase of principal residence

Who Receives Form 1098?

Mortgage lenders will send a Form 1098 to the IRS and a copy to the primary borrower of a mortgage.

Lenders are required to send this form when you pay $600 or more in interest. If you pay less than $6🎐00 in interest, you may not rec༒eive a Form 1098.

If you have more than one mortgage, you will receive a separate Form 1098 for each one.

Rules for Deducting Mortgage Interest

The IRS has rules that dictate how you can deduct mortgage interest on your taxes.

• Your home must be considered qualified in order to take advantage of this tax deduction. The home must be your main residence or a second home. It must have facilities for sleeping, cooking, and going to the bathroom.
• Your mortgage must be a secured debt.
• You can deduct interest paid on the first $750,000 of your mortgage.
• If you are married filing separately, you can deduct interest paid on the first $375,000 of your mortgage.
• If you mortgage predates Dec. 16, 2017, the limits are higher: $1 million and $500,000 for married filing separately.
  

How To Claim a Mortgage Interest Deduction

If you plan to claim your mortgage interest payment as a ta😼x ♑deduction:

• Verify that all information on the Form 1098 you receive from your lender is accurate.
• You will find the amount of mortgage interest you paid in Box 1 on Form 1098.
• You will prepare to file 澳洲幸运5官方开奖结果体彩网:Form 1040 or Form 1040-SR.
• All itemized deductions, including your mortgage interest, will be reported on 澳洲幸运5官方开奖结果体彩网:Schedule A. Your mortgage interest will go on line 8a.
  

Taxpayers have the option to decide between 澳洲幸运5官方开奖结果体彩网:itemized deductions and the 澳洲幸运5官方开奖结果体彩网:standard deduction. If your mortgage interest and other itemized deductions result in a lower taxable income, the itemized option will save you more on your taxes than the standard deduction.

Other 1098 Tax Forms

There are a number of 1098 tax forms in addition to the mortgage interest statement. Each of these forms relates to a specific type of potential tax deduction.

Form 1098-C

Form 1098-C relates to the donation of a motor vehicle, boat, or airplane. If a taxpayer donates a qualified vehicle valued at more than $500, the charitable organization that receives it will file a Form 1098-C with the IRS. The taxpayer will receive a copy of the form and potentially be able to claim a ta✱x de❀duction.

Form 1098-E

Student loan servicers send out a copy Form 1098-E to borrowers who have paid $600 or more in student loan interest. The IRS will also receive the form. Taxpayers may be able to deduct a portion of the interest paid on their tax returns.

Form 1098-T

Educational institutions file a Form 1098-T for each student they enroll who pays qualified tuition and related expenses. The IRS and the student each receive a copy. Students can use this form to claim deductions and 澳洲幸运5官方开奖结果体彩网:education tax credits, such as the 澳洲幸运5官方开奖结果体彩网:American Opportunity Tax Cℱredit (AOTC) or 澳洲幸运5官方开奖结果体彩网:Lifetime Learning Credit (LLC), on their taxes.

Form 1098-MA

Form 1098-MA is another tax form that relates to mortgage interest paid. Specifically, this form reports how much a homeowner received in mortgage assistance payments via the Housing Finance Agency Innovation Fund for the Hardest Hit Housing Markets (HFA Hardest Hit Fund).

Taxpayers use Form 1098-MA to determine how much mortgage interest is tax deductible. That amount changes when you receive mortgage payment assistance.

The Bottom Line

If you are a homeowner and you paid interest on your mortgage or mortgage points, you may be able to claim a tax deduction. Your mortgage lender will send you a Form 1098, which you can use to cal🌸culate a potential deduction. You will have to follow the speci🎃fic IRS rules regarding mortgage interest deductions.

If you receive other 1098 forms, you have additional potential itemized deductions to claim on your taxes.