Do I get a tax break just for receiving a 1098?
Not automatically. Mortgage interest is an itemized deduction, so it helps only if your itemized deductions exceed your standard deduction.
Tax guide
What Is a 1098?
A 1098 is a tax form that reports the mortgage interest you paid during the year, which may be deductible if you itemize your deductions.
Form 1098, the Mortgage Interest Statement, is sent by your mortgage lender. It shows how much interest you paid on your home loan during the year, and it may also report points and property taxes paid through the lender. A copy goes to you and to the IRS.
Mortgage interest is one of the most common itemized deductions, so this form matters mainly to people who itemize rather than take the standard deduction. If you take the standard deduction, the interest reported here generally does not change your tax. There are also other versions of the 1098 family, such as the 1098-E for student loan interest and the 1098-T for tuition.
Keep the form with your tax records so the interest you report matches what your lender reported. It helps support your deduction if questions arise.
In short
Key points
- Reports mortgage interest you paid during the year
- Officially the Mortgage Interest Statement, sent by your lender
- May also show points and property taxes paid through the lender
- Mainly useful to taxpayers who itemize deductions
- Related forms include the 1098-E for student loans and 1098-T for tuition
- A copy goes to both you and the IRS
FAQ
Frequently asked questions
What is the difference between a 1098, 1098-E, and 1098-T?
The 1098 reports mortgage interest, the 1098-E reports student loan interest, and the 1098-T reports tuition paid to a school.
Who sends me the 1098?
Your mortgage lender sends it and files a copy with the IRS, reporting the interest you paid on your home loan for the year.
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