The 1098 form reports interest you paid on a mortgage or student loan to the IRS and to you

A 1098 form is a tax document that reports money you paid in interest during the year. The IRS requires lenders to send you a 1098 if you paid at least $600 in mortgage interest or student loan interest in a calendar year. Your lender sends copies to you and to the IRS, so the IRS knows how much interest you reported on your tax return.

There are several types of 1098 forms, each tracking a different kind of interest. The most common is the 1098-T, which reports may have access to education expenses and tax credits for students. The 1098-INT reports interest from savings accounts or bonds. The 1098-Q reports distributions from ABLE accounts. The form you receive depends on what kind of debt or account you have.

You do not have to do anything when you receive a 1098. It is informational — the lender sends it to you and files a copy with the IRS so your records match. If you plan to deduct mortgage interest or claim an education credit on your tax return, you will use the numbers from your 1098 to fill out the right tax forms.

Key Takeaways

  • A 1098 form reports interest you paid on a mortgage, student loan, or education expenses during the tax year.
  • Lenders must send you a 1098 if you paid at least $600 in may have access to interest; they also file a copy with the IRS.
  • Different 1098 forms track different types of interest: 1098-T for education, 1098-INT for savings or bonds, 1098-Q for ABLE accounts, and others for mortgages.
  • You use the 1098 to report deductions or credits on your tax return, but receiving the form does not mean you must claim the deduction.

The main types of 1098 forms and what they report

The 1098-T is the education form. It reports may have access to tuition and related education expenses paid by you or your family members during the tax year. Schools send this form to students or parents who paid tuition, fees, or course materials. The 1098-T shows amounts that may may have access to for the American Opportunity Tax Credit or the Lifetime Learning Credit when you file your tax return.

The 1098-INT reports interest from savings accounts, certificates of deposit (CDs), bonds, or other investments. Banks and investment firms send this form if you earned at least $10 in interest during the year. This interest is taxable income and must be reported on your tax return.

The 1098-Q reports distributions from an ABLE account, which is a tax-advantaged savings account for people with disabilities. The form shows how much money was withdrawn and whether it was used for may have access to disability expenses.

Mortgage interest is reported on a form also called 1098, sometimes labeled 1098-M. Mortgage lenders send this when you paid at least $600 in mortgage interest during the year. The form shows the interest paid, property taxes paid, and points paid on the loan. Homeowners use this to claim the mortgage interest deduction on their tax return.

When you receive your 1098 and what to do with it

Lenders and financial institutions must send you a 1098 by January 31 of the year following the tax year. For example, interest paid in 2024 appears on a 1098 sent to you by January 31, 2025. The form shows the tax year in the top left corner so you know which year the interest applies to.

Check your 1098 against your own records. Verify that the interest amount matches what you calculated or what your statements show. If the amount is wrong, contact the lender or institution that sent it. They can issue a corrected form, called a 1098-C, which you will also receive by January 31.

Keep your 1098 with your tax records. You do not send it to the IRS — the lender already filed a copy with them. But you will need it when you prepare your tax return to fill out the right forms and schedules. If you are claiming a mortgage interest deduction, an education credit, or reporting investment income, your 1098 provides the numbers you need.

How the 1098 connects to your tax return

The 1098 is not a tax form itself — it is a supporting document. You use the information on it to complete the actual tax forms you file with the IRS. For mortgage interest, you report the amount on Schedule A if you itemize deductions. For education expenses, you use the 1098-T to claim the American Opportunity or Lifetime Learning Credit on Form 8863. For investment interest, you report it on Schedule B of your Form 1040.

Receiving a 1098 does not mean you must claim a deduction or credit. You may choose not to itemize deductions, in which case you would not use the mortgage interest from your 1098. You may not may have access to for an education credit even if you received a 1098-T. The form straightforward reports what you paid; you decide whether to use that information on your return based on your situation and what the tax rules allow.

The IRS receives a copy of every 1098 filed. When you file your tax return, the IRS matches the numbers you report to the copies lenders sent them. If your reported interest does not match the 1098 the lender filed, the IRS may send you a notice asking for an explanation. This is why accuracy matters: make sure the amounts on your 1098 match what you report on your return.

What to do if your 1098 is wrong or missing

If the amount on your 1098 does not match your records, contact the lender or financial institution that issued it. Explain the discrepancy and ask them to review their records. If they find an error, they will send you a corrected 1098-C form. Keep both the original and the corrected form with your tax records.

If you did not receive a 1098 by early February but you know you paid at least $600 in may have access to interest, contact the lender directly. Ask them to confirm whether they sent it and to what address. Sometimes forms are mailed to an old address if your account information was not updated. If the lender confirms they sent it but you never received it, ask them to reissue it or provide a written statement of the interest paid.

If a lender failed to send a 1098 when they were required to, you can still report the interest on your tax return. Use your own records — bank statements, loan statements, or year-end summaries from the lender — to document the amount. The IRS may not have a copy on file, but you can explain this if they contact you. Keeping your own records protects you if a 1098 is late or missing.

Frequently Asked Questions

Do I have to claim a deduction if I received a 1098?

No. A 1098 reports what you paid, but you decide whether to use that information on your tax return. You may not may have access to for a deduction or credit, or you may choose to take the standard deduction instead of itemizing. The form is informational only.

What if I paid less than $600 in interest but still want to report it?

You can report interest even if you did not receive a 1098. The $600 threshold only requires lenders to send you a form; it does not prevent you from reporting lower amounts. Use your own statements and records to document the interest paid.

Can I use a 1098 from a previous year on this year's tax return?

No. A 1098 applies only to the tax year shown on the form. Interest paid in 2024 goes on your 2024 tax return, not your 2025 return. Each year you receive a new 1098 for that year's interest.

What happens if the 1098 amount does not match what I reported on my tax return?

The IRS may send you a notice asking for an explanation. Respond with documentation showing why the amounts differ — for example, if you paid off the loan mid-year or if the lender made an error. Keep copies of your statements and any corrected 1098-C forms you received.

Is the interest on a 1098 always tax-deductible?

Not always. Mortgage interest is deductible if you itemize deductions, but only on loans up to $750,000. Student loan interest has an annual deduction limit of $2,500. Investment interest has specific rules about what qualifies. Your tax situation determines whether you can deduct the full amount, part of it, or none of it.