The 1098 is a tax form your mortgage lender or student loan servicer sends you each year

The Form 1098 is a document that reports mortgage interest or student loan interest you paid during the tax year. Your lender mails it to you by January 31 each year if you paid at least $600 in may have access to interest. The form shows how much interest went to the lender, how much went to mortgage insurance premiums (if applicable), and other details the IRS uses to verify your deductions.

There are actually several versions of the 1098 form, each for a different type of loan. The most common is the 1098-T for student loan interest, the 1098-H for mortgage insurance premiums, and the standard 1098 for mortgage interest on a home loan. Each one serves the same basic purpose: it documents interest you paid so you can claim a deduction on your tax return if you meet the requirements.

You receive a 1098 whether or not you plan to deduct the interest. The lender sends it to you and to the IRS at the same time. If you lose your copy, you can request a duplicate from your lender or access it through your online account.

Key Takeaways

  • The 1098 form reports mortgage interest or student loan interest you paid during the year, sent by your lender by January 31.
  • You only receive a 1098 if you paid at least $600 in may have access to interest during the tax year.
  • Different loan types use different 1098 versions: 1098 for mortgages, 1098-T for student loans, and 1098-H for mortgage insurance premiums.
  • The form is sent to both you and the IRS, so the amounts must match what you report on your tax return.
  • You can deduct mortgage interest or student loan interest only if you itemize deductions and meet income limits, which vary by loan type.

How the 1098 connects to your tax deduction

The 1098 itself is not a deduction — it is documentation that supports a deduction you claim on your tax return. When you file taxes, you report the interest amount from your 1098 on the appropriate line of your return. The IRS compares what you report to what the lender reported on the copy they sent to the agency, so the numbers must match.

For a mortgage, you can deduct the interest only if you itemize deductions on Schedule A instead of taking the standard deduction. The standard deduction is a flat amount that changes each year; itemizing means adding up all your deductible expenses (mortgage interest, property taxes, charitable donations, and others) and using that total instead. Many people find the standard deduction is larger, so they do not itemize.

For student loan interest, the rules are different. You can deduct up to $2,500 of student loan interest per year even if you take the standard deduction, but only if your income falls below a certain threshold. That threshold changes each year and depends on your filing status.

What information appears on a 1098

A standard mortgage 1098 includes your name, address, and loan account number; the lender's name and address; the total mortgage interest you paid that year; and the outstanding principal on your mortgage as of January 1. It also shows any mortgage insurance premiums you paid, which may be deductible under certain conditions.

A 1098-T for student loans shows the student's name and Social Security number, the school's name and code, and the amount of may have access to education expenses paid during the year. A 1098-H for mortgage insurance premiums breaks out the insurance portion of your payment separately from the interest.

The form includes boxes for different types of information. Box 1 on a mortgage 1098 is mortgage interest; Box 4 is mortgage insurance premiums. Each box has a number so you know which line of your tax return to use. The form also shows whether the loan is a home acquisition loan (used to buy or build a home) or a home equity loan (borrowed against the home's value), because the deduction rules differ.

When you receive your 1098 and what to do with it

Your lender must send the 1098 by January 31 of the year after you paid the interest. If you do not receive it by early February, contact your lender and ask them to resend it or provide a transcript showing the interest paid. Many lenders now let you read the form from your online account rather than waiting for the paper copy.

Keep your 1098 with your tax records for at least three years. You do not send the form to the IRS — your lender does that — but you do need it to fill out your tax return accurately. If you file electronically, your tax software will ask you to enter the amounts from your 1098, and the software will check them against what the IRS received.

If the 1098 shows an amount that does not match your records, contact your lender when ready. Errors can happen, and the lender can issue a corrected form (called a corrected 1098) if needed. You then file the corrected version with your tax return.

Mortgage interest deduction limits and rules

Not all mortgage interest is deductible. The interest must be on a loan used to buy, build, or improve a home, and the home must be your primary residence or a second home. Interest on a home equity line of credit (HELOC) or cash-out refinance is deductible only if the borrowed money was used to improve the home itself.

There is also a cap on how much mortgage interest you can deduct. As of 2024, you can deduct interest on up to $750,000 of mortgage debt if you are married filing jointly, or $375,000 if you are married filing separately. If your mortgage is larger than that, only the interest on the first $750,000 is deductible. This limit applies to loans taken out after December 15, 2017; older loans have a $1,000,000 cap.

Mortgage insurance premiums (PMI) are shown separately on the 1098-H. These premiums may be deductible as mortgage interest if your income is below a certain level, but the deduction phases out as income rises. The rules for PMI deductibility change year to year, so check the current rules when you file.

Student loan interest deduction and income limits

The student loan interest deduction allows you to deduct up to $2,500 of interest paid on federal or private student loans, even if you do not itemize deductions. This is one of the few "above-the-line" deductions available to most taxpayers.

However, the deduction phases out if your income exceeds a threshold. For 2024, the phase-out begins at $75,000 for single filers and $155,000 for married couples filing jointly. Once your income reaches $90,000 (single) or $185,000 (married filing jointly), you cannot claim any deduction. These income limits change each year.

The 1098-T shows the interest you paid, but you must also verify that the loan is a may have access to student loan and that you are not claimed as a dependent on someone else's return. If you paid interest on a loan for someone else's education (such as a parent paying a child's loan), you cannot deduct it — only the person whose name is on the loan can claim the deduction.

What to do if you do not receive a 1098

If you paid mortgage interest or student loan interest but did not receive a 1098, start by checking your lender's online portal or calling their customer service line. Many lenders now send forms electronically, and the form may be available to read before the paper copy arrives.

If your lender confirms they sent the form and you still have not received it after February 15, ask them to issue a duplicate. Provide them with your loan account number and the tax year in question. Some lenders charge a small fee for duplicates, though many waive it.

If you cannot obtain a 1098 from your lender, you can still claim the deduction if you have other proof of the interest paid — such as a loan statement, payment history, or year-end summary from your account. However, the IRS will be checking your return against the 1098 the lender sent them, so mismatches may trigger a notice. It is better to get the actual form or a corrected version from the lender before filing.

Frequently Asked Questions

Do I have to itemize deductions to use the mortgage interest from my 1098?

Yes, you can only deduct mortgage interest if you itemize deductions on Schedule A. If you take the standard deduction instead, you cannot use the mortgage interest. However, student loan interest is deductible even if you take the standard deduction, up to $2,500 per year.

What if I paid off my mortgage early or refinanced during the year?

Your 1098 will show only the interest you actually paid during that tax year. If you refinanced, you may receive two 1098 forms — one from your original lender for the interest paid before the refinance, and one from the new lender for interest paid after. Both amounts are deductible if you itemize.

Can I deduct interest on a home equity line of credit?

Only if the money borrowed was used to improve the home itself. Interest on a HELOC used for other purposes — such as paying off credit cards or buying a car — is not deductible. The 1098-H will show the amount, but you must verify the loan's purpose before claiming the deduction.

What happens if the 1098 amount does not match my loan statements?

Contact your lender when ready and ask them to review the calculation. Errors can occur, especially if you made extra payments or had a loan modification during the year. The lender can issue a corrected 1098 if needed. Do not file your tax return until the amounts match.

Do I need to send my 1098 to the IRS when I file my taxes?

No. Your lender sends a copy directly to the IRS at the same time they send one to you. You keep your copy for your records and use it to fill out your tax return, but you do not mail it in. The IRS matches what you report to what they received from the lender.