Form 1098, also known as the Mortgage Interest Statement

Form 1098, also known as the Mortgage Interest Statement, is an IRS tax form issued by mortgage lenders to borrowers. Key points include:

1. Reports mortgage interest paid by the borrower in a calendar year

2. Issued for interest payments of $600 or more

3. Typically sent to borrowers by January 31 of the following year

4. Contains important information for tax deductions, including:

   – Total interest paid

   – Points paid on the purchase of a home

   – Property taxes paid through escrow

5. Identifies the lender and borrower

This form is crucial for homeowners who itemize deductions on their tax returns. It allows them to claim the mortgage interest deduction, which can significantly reduce their taxable income. Borrowers should keep this form with their tax records and use the information when preparing their annual tax returns. If you don’t receive a Form 1098 but paid mortgage interest, you should contact your lender or use your personal records to report the interest paid on your tax return.