Form 1098 (Mortgage Interest Statement)

Category: tax

The form used to report mortgage interest payments of $600 or more received by a lender.

Your bank sends you this so you know exactly how much interest to claim on your itemized deduction. It is the primary proof the IRS requires to verify that you are entitled to write off the interest paid on your home loan.

Common Examples

• The bank issued Form 1098, confirming the total interest paid during the year, which we then included in our itemized deduction schedule.
• Without Form 1098, taxpayers have to manually track their monthly mortgage payments to accurately claim their housing interest deduction.