Form 1098 is the IRS form your mortgage servicer sends each January showing how much mortgage interest you paid during the year. You use it to claim the mortgage interest deduction on your federal tax return if you itemize deductions.
Form 1098 — officially the Mortgage Interest Statement — is an IRS information return your mortgage lender or servicer is required to send you each year by January 31 if you paid $600 or more in mortgage interest on a qualified loan during the prior tax year. The form shows the total mortgage interest paid, which you can use to claim the mortgage interest deduction on Schedule A of your federal tax return — but only if you itemize deductions instead of taking the standard deduction. This is educational content; consult a tax professional for your specific situation.
The mortgage interest deduction is available only to taxpayers who itemize deductions on Schedule A (rather than taking the standard deduction). For most taxpayers, the standard deduction exceeds their total itemized deductions — making the 1098 informational but not useful for a deduction. If you do itemize, the IRS limits the mortgage interest deduction to interest on up to $750,000 of qualified home loan debt (for loans originated after December 15, 2017) on a primary residence and one qualified second home. Loans originated before December 16, 2017, may qualify under the prior $1,000,000 limit. See IRS Publication 936 (Home Mortgage Interest Deduction).
Interest on a home equity loan or HELOC may also generate a Form 1098 from your lender. Under current rules (Tax Cuts and Jobs Act), that interest is only deductible if the loan was used to buy, build, or substantially improve the home securing the loan. Interest on a HELOC used for other purposes (paying off credit cards, vacation, etc.) is generally not deductible. See IRS Notice 2018-32 and Publication 936.
If your mortgage is on a business property (commercial real estate, a rental property), the interest reported on Form 1098 is generally deductible as a business expense on Schedule E or Schedule C — separate from the personal mortgage interest deduction rules. Consult a CPA if your property has mixed personal and business use.
Your lender must mail Form 1098 by January 31. If you don't receive it by mid-February, contact your mortgage servicer. You need the form before you can accurately complete Schedule A. This is educational content — consult a tax professional for your specific deductibility situation.
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