The 1098 form reports mortgage interest and property taxes you paid during the year

The Form 1098 is a document your mortgage lender sends you each January. It lists the mortgage interest and property taxes you paid in the previous year. You use these numbers when you file your tax return to claim deductions — but only if you itemize deductions instead of taking the standard deduction.

Your lender is required to send you a 1098 if you paid $600 or more in mortgage interest during the year. Some lenders send it even if the amount is lower. You will receive it by January 31 of the year following the tax year in question.

The form comes in several versions depending on what kind of loan you have. The most common is the 1098 Mortgage Interest Statement. Other versions cover student loan interest (1098-T), may have access to tuition (1098-T), and other specific situations. This guide focuses on the standard mortgage 1098.

Key Takeaways

  • Form 1098 shows mortgage interest and property taxes paid during the year, which you can deduct only if you itemize on your tax return.
  • Your lender sends the 1098 by January 31 if you paid $600 or more in mortgage interest, though some send it for lower amounts.
  • You receive a copy for your records and the IRS receives a copy automatically, so the numbers must match your tax return.
  • The form includes boxes for mortgage interest, property taxes, points paid, and mortgage insurance premiums — not all boxes explore to every borrower.
  • If the 1098 contains an error or you do not receive one, contact your lender when ready rather than waiting until tax time.

Where to find each piece of information on the 1098

The 1098 has numbered boxes. The ones that matter most for your tax return are:

Box 1: Mortgage interest received. This is the total interest you paid on your mortgage during the year. This is the number you use to claim the mortgage interest deduction on Schedule A if you itemize.

Box 2: Points paid in connection with purchase of principal residence. Points are an upfront fee some borrowers pay to lower their interest rate. You may be able to deduct these, but the rules depend on whether you paid them yourself or the seller paid them. Your lender will note this in the box.

Box 3: Refund of overpaid interest. If you paid too much interest in a prior year and the lender refunded it, the amount appears here. This reduces the interest you can deduct.

Box 4: Standby fee, commitment fee, or other fee. Most borrowers leave this blank. It applies only to certain commercial or construction loans.

Box 5: Mortgage insurance premiums paid or accrued. If you paid mortgage insurance (PMI) during the year, the amount goes here. You may be able to deduct this, though the rules change year to year and depend on your income.

Box 6: Outstanding principal on the mortgage. This is the amount you still owed at the end of the year. It is informational and does not go on your tax return.

Box 7: Property taxes paid from escrow account. If your lender held an escrow account and paid property taxes on your behalf, the amount appears here. You can deduct property taxes on Schedule A, but there is a limit of $10,000 per year for all state and local taxes combined (SALT cap).

What to do if the 1098 does not match your records

Before you file your tax return, compare the 1098 to your own records. Check your mortgage statements from throughout the year and add up the interest and taxes you paid. The 1098 should match that total.

If the numbers do not match, contact your lender's customer service department right away. Do not wait until tax time. Errors are common — a payment may have been posted late, an escrow account may have been adjusted, or a refinance may have split the year between two lenders. Your lender can issue a corrected 1098 (marked as a correction) before you file.

If you received a 1098 but believe you should not have (for example, you paid off the loan mid-year and paid less than $600 in interest), you can still file your return using your own records. The IRS will not penalize you if your numbers are accurate.

When you do not receive a 1098

If January 31 has passed and you have not received your 1098, contact your lender. Ask them to confirm they have your correct mailing address. Some lenders offer online access to the 1098 before mailing a paper copy.

If your lender says they did not send one because you paid less than $600 in interest, you can still deduct the interest you actually paid. Use your mortgage statements to calculate the total and report it on Schedule A. The IRS will not have a record of the amount, but if your return is accurate, there is no problem.

If you refinanced during the year, you may receive two 1098 forms — one from your original lender and one from the new lender. Both are correct. Add the interest from both forms when you calculate your deduction.

How the 1098 affects your tax return

You can only use the 1098 to deduct mortgage interest if you itemize deductions on Schedule A. Most taxpayers use the standard deduction instead, which means the 1098 does not reduce their taxes.

To itemize, your total deductions (mortgage interest, property taxes, charitable donations, and other allowed expenses) must exceed the standard deduction for your filing status. For 2024, the standard deduction is $14,600 for single filers and $29,200 for married filing jointly. If your itemized deductions do not exceed these amounts, you will not benefit from the 1098.

If you do itemize, you report the mortgage interest from Box 1 of the 1098 on line 8a of Schedule A. Property taxes from Box 7 go on line 5a, but remember the $10,000 SALT cap applies. Mortgage insurance premiums from Box 5 go on line 8b, though this deduction is not available every year — check current tax rules for the year you are filing.

Keeping your 1098 for your records

Keep the 1098 with your tax return documents for at least three years. The IRS can audit a return up to three years after you file, and you will need the 1098 to prove the numbers you reported.

Your lender also sends a copy to the IRS. If the interest amount on your tax return does not match the 1098, the IRS will notice. If you reported less interest than the 1098 shows, the IRS may send you a notice. If you reported more, you may face questions about where the extra amount came from.

If you lost your 1098, contact your lender and request a duplicate. They can reissue it. Do not guess at the numbers or use an old year's form — the IRS will catch the mismatch.

Different types of 1098 forms and when you receive them

The standard mortgage 1098 is the most common, but other 1098 forms exist for different situations. The 1098-T covers may have access to tuition and education expenses for students. The 1098-Q covers ABLE account contributions. The 1098-MA covers Massachusetts health care coverage.

You may receive multiple 1098 forms in the same year if you have more than one mortgage, attended school, or had other may have access to expenses. Each form goes with a different part of your tax return. Do not confuse them — a 1098-T goes on a different schedule than a 1098 mortgage form.

If you are unsure which form you received or where it goes on your return, the form itself includes instructions. You can also find detailed guidance on the IRS website by searching for the specific form number.

Frequently Asked Questions

Do I have to report the 1098 on my tax return?

You report it only if you itemize deductions. If you take the standard deduction, you do not report the 1098 at all, and it does not reduce your taxes. You can choose whichever method gives you the larger deduction.

What if I paid mortgage interest but did not receive a 1098?

If you paid less than $600 in interest, your lender may not be required to send one. You can still deduct the interest you actually paid using your mortgage statements. Add up the interest from each monthly statement and report the total on Schedule A.

Can I deduct mortgage interest if I refinanced during the year?

Yes. You will receive two 1098 forms — one from each lender. Add the interest from both forms and report the total on your tax return. Both amounts are deductible in the year you paid them.

Why does my 1098 show interest I did not think I paid?

Interest is recorded when it accrues, not always when you pay it. If you made a large payment late in the year, some of that interest may have been accrued in the prior year. Your mortgage statement shows when interest was charged; the 1098 shows when it was recorded by the lender.

Is mortgage insurance premium deductible?

Mortgage insurance premiums shown in Box 5 may be deductible, but the rules change year to year and depend on your income level. Check current IRS guidance for the tax year you are filing to see if you can claim this deduction.