The 1098 is a tax form your lender sends you each year showing how much mortgage interest you paid

A 1098 form is a document your mortgage lender mails to you and the IRS every January. It reports the total mortgage interest you paid during the previous year, along with a few other loan-related details. The form exists so you and the IRS have the same record of what you paid in interest — which matters because mortgage interest is tax-deductible for most homeowners.

You will receive a 1098 if you took out a mortgage to buy a home or refinanced an existing mortgage. The lender is required by law to send it to you by January 31st of the year following the tax year in question. For example, you get the 2024 form by January 31, 2025.

The 1098 is not a bill and does not require you to do anything with it when ready. It is straightforward a record of what happened with your loan during that year. You use it when you file your taxes if you are itemizing deductions rather than taking the standard deduction.

Key Takeaways

  • The 1098 shows the total mortgage interest you paid in a calendar year, reported by your lender to both you and the IRS.
  • You receive a 1098 only if you have a mortgage or home equity loan; renters and people who own their homes outright do not get one.
  • The form arrives by January 31st each year and covers the previous calendar year, so the 2024 form arrives in early 2025.
  • Mortgage interest is deductible on your federal tax return, but only if you itemize deductions rather than take the standard deduction.
  • If the 1098 contains an error, contact your lender to request a corrected form, which they must send within 30 days.

What information appears on the 1098

The 1098 contains several boxes, but the most important one for taxes is Box 1, which shows the total mortgage interest you paid during the year. This is the number you use on your tax return if you are itemizing deductions.

Other boxes on the form include the loan origination date, the outstanding principal balance at year-end, and any property taxes your lender paid on your behalf (though this is rare). Some 1098 forms also show mortgage insurance premiums you paid, which may be deductible in certain situations. The form will have your name, address, and loan number so you can match it to your account.

The 1098 does not show your monthly payment amount, your principal balance at the start of the year, or how much principal you paid down. It focuses on interest and a few other specific items the IRS requires lenders to report.

Who receives a 1098 and who does not

You receive a 1098 if you have a mortgage on a primary residence, second home, or investment property. You also get one if you have a home equity line of credit (HELOC) or home equity loan where the lender is required to report the interest you paid.

You will not receive a 1098 if you own your home outright with no mortgage, if you are a renter, or if the interest you paid during the year was very small (some lenders do not issue a 1098 if interest was below a certain threshold, though this is uncommon). If you have a mortgage but do not receive a 1098 by early February, contact your lender to ask whether one was issued.

How the 1098 connects to your tax return

The 1098 is relevant to your taxes only if you itemize deductions on your federal return. When you itemize, you add up may be able to access expenses — mortgage interest, property taxes, charitable donations, and a few others — and deduct that total instead of taking the standard deduction. If your itemized deductions exceed the standard deduction for your filing status, itemizing saves you money.

Most homeowners today take the standard deduction because it is higher than their itemized deductions would be. The standard deduction for 2024 is $14,600 for single filers and $29,200 for married couples filing jointly. If your mortgage interest alone is less than these amounts, and you have few other deductible expenses, itemizing will not help you.

If you do itemize, you report your mortgage interest from Box 1 of the 1098 on Schedule A of Form 1040. The IRS cross-checks this against the copy of the 1098 your lender sent them, so the numbers should match.

What to do if your 1098 has an error

If the interest amount on the 1098 does not match what you calculated from your monthly statements, or if your name or loan number is wrong, contact your lender right away. Ask to speak with someone in the loan servicing or accounting department who can review your account.

If the lender confirms there was an error, they will issue a corrected 1098, usually marked as a "corrected" form. They must send the corrected version to you and the IRS within 30 days of discovering the error. Do not file your taxes using the incorrect 1098; wait for the corrected one if one is on the way.

If you have already filed your return and later discover the 1098 was wrong, you can file an amended return using Form 1040-X. This is straightforward and the IRS expects it to happen occasionally.

The difference between a 1098 and a 1098-T

The 1098 for mortgages is different from a 1098-T, which is for education expenses. If you are a student or parent paying for college, you might receive a 1098-T from your school showing may have access to education costs. These are completely separate forms for different purposes.

There is also a 1098-C for charitable vehicle donations and a 1098-MA for Massachusetts health care. The "1098" family of forms all report different types of deductible expenses. Make sure you are using the correct form for your situation.

Frequently Asked Questions

Do I need to attach the 1098 to my tax return?

No. You do not send the 1098 itself to the IRS. You straightforward use the information from it — the mortgage interest amount — when you fill out Schedule A if you are itemizing. The IRS receives their own copy directly from your lender, so they already have the form on file.

What if I paid off my mortgage during the year?

You will still receive a 1098 for that year, but it will show only the interest you paid before the loan was paid off. The form covers January through whenever you paid it off, not the full calendar year.

Can I deduct mortgage interest if I take the standard deduction?

No. Mortgage interest is only deductible if you itemize deductions on Schedule A. If you take the standard deduction, you cannot also deduct mortgage interest separately. You choose one method or the other.

What if my lender did not send me a 1098?

Contact your lender and ask whether a 1098 was issued for your account. If you had a very small mortgage balance or paid off the loan early in the year, the lender might not have issued one. If one should have been issued and was not, the lender can send it to you, usually within a few business days.

Does the 1098 show how much principal I paid?

No. The 1098 shows only interest, not principal. If you want to know how much principal you paid down during the year, check your year-end mortgage statement or contact your lender. Principal payments do not affect your taxes.