A Form 1098 mortgage interest statement allows borrowers to report interest paid on a mortgage, including points, of $600 or more, explains Forbes. Lenders issue Form 1098 mortgage interest statements to borrowers with real property that secures mortgages. The IRS does not require a lender to issue a 1098 if real property does not secure the mortgage.Continue Reading
Borrowers use Form 1098 mortgage interest statement to claim interest on their federal income tax returns. The rules for mortgage interest deductions apply for primary homes and mortgages on second homes, notes Forbes. Borrowers cannot claim more than $1 million for primary homes and second homes, and the threshold is $500,000 if filing married filing separately.
The 1098 mortgage interest statement also shows how much borrowers paid in private mortgage insurance and property taxes, according to Turbo Tax. Most borrowers receive their mortgage interest statements in late January or early February. Lenders sometimes include 1098 mortgage interest information on the borrower’s January mortgage bill. Although the 1098 does not look like a tax form, it lists that the form is a 1098 mortgage interest statement, reports SFGate. Borrowers may call their lenders through customer service help lines to request copies of their 1098 mortgage interest statements.Learn more about Credit & Lending