What is Form 1098?
Form 1098, also known as the Mortgage Interest Statement, is an important tax document for homeowners. It reports the amount of mortgage interest paid in a year, which can be deducted from your taxable income. This can lead to potential tax savings. Lenders send this form to both you and the IRS. If you itemize your deductions, using this form can help reduce your tax bill, making it vital for anyone paying a mortgage.
What is Form 1098 used for?
Form 1098, also known as the Mortgage Interest Statement, is important for taxpayers who own a home. It serves to:
- to report mortgage interest received by the lender.
- to provide details about mortgage points paid.
- to indicate if the mortgage is secured by the property.
How to fill out Form 1098?
- 1
Enter your lender's name, address, and TIN (Taxpayer Identification Number) in the top section.
- 2
Fill in your mortgage interest amount in Box 1.
- 3
Include any points paid in Box 2, if applicable.
- 4
Report any real estate taxes paid in Box 10, if applicable.
- 5
Check for accuracy and ensure all information matches your records.
- 6
Save your completed form for your records.
Who is required to fill out Form 1098?
Form 1098 is completed by mortgage lenders and financial institutions. They provide this form to report mortgage interest paid by borrowers.
Homeowners receiving Form 1098 use it to claim mortgage interest deductions on their tax returns.
When is Form 1098 not required?
Form 1098 isn’t required if you don’t pay mortgage interest, like renters or homeowners with a paid-off mortgage. If your mortgage lender is a governmental unit or you’re a borrower who doesn't meet the minimum interest threshold, you won’t receive this form.
Additionally, if your mortgage is for a home not used for personal purposes, such as investment or rental properties, you may not receive a 1098.
When is Form 1098 due?
The deadline for Form 1098, Mortgage Interest Statement, is January 31 of each year. This form must be sent to borrowers by lenders who received mortgage interest payments during the previous year.
It's important to keep this in mind when preparing your taxes, as you will need this information to report your mortgage interest correctly. Be sure to check if you received this form in time for your tax filing.
How to get a blank Form 1098?
To get a blank Form 1098, simply visit our website. The form will be pre-loaded in our editor, allowing you to fill it out right away. Once completed, you can download it for your records.
Do you need to sign Form 1098?
Form 1098, the Mortgage Interest Statement, does not require a signature. Always check for recent updates from the IRS to avoid any misinformation. Staying informed helps minimize liability and ensures compliance with current regulations.
Where to file Form 1098?
Form 1098 can be filed by mail or electronically. If filing online, ensure the software meets IRS requirements for electronic submission.
When filing by mail, send the completed form to the address specified in the IRS instructions. Keep a copy for your records.
