Form 1098 is a statement your mortgage lender or student loan servicer sends you each year showing the interest you paid

Form 1098 reports money you paid in interest during the tax year — either on a mortgage or on a student loan. Your lender is required by the IRS to send you this form by January 31 if you paid $600 or more in interest. You receive it so you can report that interest on your tax return and potentially reduce your taxable income.

The form comes in two main versions: Form 1098 (for mortgage interest) and Form 1098-T (for student loan interest). This article covers the standard 1098 for mortgages. Both forms work the same way — they document money you paid out, and you use that information when you file your taxes.

You do not need to submit Form 1098 to the IRS yourself. Your lender files a copy with the IRS and sends you a copy. Your job is to read it, check it for accuracy, and use the numbers when you fill out your tax return.

Key Takeaways

  • Form 1098 shows the mortgage interest you paid in a calendar year, sent by your lender by January 31.
  • You receive this form only if you paid $600 or more in interest during the year.
  • The interest reported on Form 1098 may be deductible on your tax return if you itemize deductions.
  • You should check the form for errors before filing your taxes, especially if you refinanced or paid off a loan mid-year.
  • If the form shows the wrong amount or your lender does not send it, contact your lender to request a corrected copy.

Where Form 1098 appears on your tax return

If you itemize deductions on Schedule A (Form 1040), you report the mortgage interest from Form 1098 on line 8a. This reduces your taxable income, which can lower the tax you owe.

Not everyone benefits from reporting mortgage interest. You only get a tax advantage if your total itemized deductions exceed the standard deduction for your filing status. For 2024, the standard deduction is $14,600 for single filers and $29,200 for married filing jointly — these amounts change each year. If your itemized deductions (mortgage interest, property taxes, charitable donations, and other allowed expenses) add up to more than that, you itemize. If not, you take the standard deduction and do not report the mortgage interest.

Many homeowners with mortgages do not benefit from reporting mortgage interest because their itemized deductions do not exceed the standard deduction. A tax professional or tax software can show you which approach saves you more money.

What each box on Form 1098 means

Form 1098 has several boxes. The most important one for your taxes is Box 1, which shows the mortgage interest you paid during the year. This is the number you use on your tax return.

Box 2 shows points paid on the mortgage — a one-time fee some borrowers pay to lower their interest rate. Points are also deductible as mortgage interest in certain situations, though the rules are more complex than regular interest.

Box 3 shows the outstanding principal balance on your mortgage as of January 1 of the year the form covers. This is informational and does not go on your tax return.

Box 4 shows the date the mortgage was originated. Box 5 shows whether the mortgage is a home acquisition loan (used to buy or build your home) or a home equity loan (borrowed against the equity you already have). This matters because the deduction rules differ slightly between the two.

Boxes 6 through 9 are less common and explore only in specific situations, such as property taxes paid by the lender or insurance premiums included in your payment.

Common reasons Form 1098 might look wrong

If you refinanced your mortgage during the year, your Form 1098 will show interest paid to your old lender only. You will receive a separate Form 1098 from your new lender showing interest paid to them. You add both amounts together when you file your taxes.

If you paid off your mortgage early or sold your home mid-year, the interest shown on Form 1098 will be lower than you might expect — it covers only the months you actually owed the loan. This is correct and reflects what you actually paid.

If you made extra principal payments, those do not appear on Form 1098. The form shows only interest, not principal. This is why your monthly mortgage statement (which breaks down interest and principal separately) may show different numbers than Form 1098.

If you believe Form 1098 contains an error — the wrong amount, the wrong property address, or your name spelled incorrectly — contact your lender's customer service or the loan servicer listed on the form. Ask them to send you a corrected Form 1098-C. You have until the tax filing important date to request a correction.

When you might not receive Form 1098

Your lender sends Form 1098 only if you paid $600 or more in mortgage interest during the year. If you paid less than $600, you will not receive the form, but you can still deduct the interest you paid if you itemize. Contact your lender for a statement showing how much interest you paid, or check your mortgage statements.

If you are a new homeowner and closed on your mortgage late in the year, you may have paid very little interest. You still deduct what you paid, even without Form 1098.

If you do not receive Form 1098 by early February and you believe you should have, contact your lender. They may have the wrong mailing address on file or may still be processing the form.

How Form 1098 connects to your mortgage statement

Your monthly mortgage statement shows how much of each payment goes to interest and how much goes to principal. Form 1098 adds up all the interest payments from the entire year and reports the total. The two should match if you made all your regular payments and did not refinance.

If you made extra payments or paid ahead, your monthly statements will show that activity, but Form 1098 reports only the interest actually paid during the calendar year. This is why the annual total on Form 1098 might differ slightly from what you calculated by adding up your monthly statements — timing matters.

Frequently Asked Questions

Do I have to report Form 1098 even if I do not itemize deductions?

No. If you take the standard deduction, you do not report mortgage interest on your tax return. You still keep Form 1098 for your records, but it does not affect your taxes. You only report the interest if you itemize deductions and it is part of your total itemized deductions.

What if my lender sends me Form 1098 but I paid off the loan early?

The form is correct — it shows the interest you actually paid before you paid off the loan. Report that amount on your tax return if you itemize. If you paid off the loan in a later year, you will not receive Form 1098 for that year because you paid no interest.

Can I deduct mortgage interest if I did not receive Form 1098?

Yes. Form 1098 is a record-keeping tool, not a requirement to deduct interest. If you paid $600 or more in interest but did not receive the form, contact your lender for a statement. If you paid less than $600, you can still deduct it — just keep your mortgage statements as proof.

Does Form 1098 show property taxes I paid?

No. Form 1098 shows only mortgage interest and points. Property taxes are reported separately on your property tax statement or on Form 1098-T if your lender paid them on your behalf. You report property taxes on Schedule A as a separate line item.

What if the interest amount on Form 1098 does not match my mortgage statements?

Small differences can occur due to timing — Form 1098 covers the calendar year, while your payment due dates may not align with January 1 and December 31. If the difference is large, contact your lender. They can explain the discrepancy or send you a corrected form if there was an error.