IRS Form 1098 – If you’re a homeowner with a mortgage, you’ve likely encountered IRS Form 1098, also known as the Mortgage Interest Statement. This essential tax document plays a key role in claiming deductions on your federal income tax return, potentially saving you money during tax season. In this guide, we’ll break down everything you need to know about Form 1098, including its purpose, the information it contains, and how to use it effectively for your 2025 tax year filings (as of early 2026). We’ll draw from official IRS resources to ensure accuracy and relevance.
Whether you’re wondering “what is IRS Form 1098” or how to interpret its various boxes, this article provides clear, step-by-step insights. Note that the form discussed here is often marked as “Info Copy Only,” meaning it’s for your reference and not for official filing with the IRS.
What Is IRS Form 1098?
IRS Form 1098 is an information return used to report mortgage interest payments of $600 or more received by a lender during the calendar year. It’s primarily issued by financial institutions, banks, or other lenders to borrowers who have paid qualifying mortgage interest. This form helps taxpayers itemize deductions on Schedule A of Form 1040, where mortgage interest can reduce your taxable income.
The form covers interest on obligations secured by real property, such as primary mortgages, home equity loans, or lines of credit. It does not include interest on non-mortgage debts like credit cards or auto loans. For tax purposes, a “mortgage” is defined as any obligation secured by real property, with specific rules based on when the debt was incurred.
Key points about the form:
- Threshold: Lenders must issue Form 1098 if you paid $600 or more in mortgage interest in a single year.
- Multiple Mortgages: A separate form is required for each mortgage, even if the total across all exceeds $600.
- Info Copy Only: The version you receive (or download, such as from https://www.irs.gov/pub/irs-pdf/f1098.pdf) is for informational purposes. Lenders file the official scannable Copy A with the IRS.
This document is crucial for homeowners aiming to maximize deductions, especially with the standard deduction increasing in recent years (for 2025, it’s $14,600 for single filers and $29,200 for married filing jointly). If your itemized deductions—including mortgage interest—exceed the standard, filing with Form 1098 details can be beneficial.
Who Issues and Receives Form 1098?
Who Issues It?
Form 1098 is filed by entities engaged in a trade or business that receive mortgage interest payments. This includes:
- Banks and credit unions
- Mortgage servicing companies
- Governmental units
- Cooperative housing corporations
Lenders must report interest from individuals, including sole proprietors. If you’re a lender (e.g., in a private mortgage scenario), you may need to file if payments meet the threshold.
Who Receives It?
Borrowers (payers) receive Copy B of the form by January 31 of the following year. You’re eligible if:
- You paid $600 or more in mortgage interest on a qualifying loan.
- The loan is secured by real property (e.g., your home).
Even if interest is less than $600, some lenders may voluntarily report it, subjecting them to full reporting rules.
Special cases:
- Refinances or Acquisitions: If your mortgage was acquired by a new lender during the year, the acquisition date appears in Box 11.
- Overpayments: Refunds of overpaid interest from prior years are reported and may require income reporting on your return.
Breaking Down the Boxes on Form 1098
Understanding the fields on Form 1098 is essential for accurate tax preparation. Here’s a detailed look at each box, based on the official form layout:
| Box Number | Description |
|---|---|
| Recipient’s/Lender’s Info | Includes name, address, phone, and TIN (Taxpayer Identification Number). |
| Payer’s/Borrower’s Info | Your name, address, and TIN (last four digits shown for security). |
| Account Number | Unique identifier for your mortgage account. |
| Box 1: Mortgage Interest Received | Total interest paid during the year (e.g., on mortgages or home equity loans). This is the key figure for deductions but excludes points or subsidies. |
| Box 2: Outstanding Mortgage Principal | Principal balance as of January 1 (or origination/acquisition date if new). Helps track loan progress. |
| Box 3: Mortgage Origination Date | Date the loan began, important for deduction limits (e.g., loans after 2017 have a $750,000 cap). |
| Box 4: Refund of Overpaid Interest | Any refunded overpayments from prior years—not deductible and potentially taxable income. |
| Box 5: Mortgage Insurance Premiums | Premiums paid, which may be deductible (consult Pub. 936 for rules). |
| Box 6: Points Paid | Points on principal residence purchase; often deductible in the year paid. Seller-paid points reduce your home’s basis. |
| Box 7 | Checkbox if the secured property address matches yours. |
| Box 8: Property Address/Description | Details if different from your address (e.g., rental property). |
| Box 9: Number of Properties | Indicates if multiple properties secure the loan (blank if one). |
| Box 10: Other | Additional info like real estate taxes or escrow payments. |
| Box 11: Mortgage Acquisition Date | Date if lender acquired your loan during the year. |
These details are extracted from the official IRS Form 1098 PDF. For a visual reference, download the info copy from the IRS website.
How to Use Form 1098 for Your Tax Deduction
To claim the mortgage interest deduction:
- Itemized Deductions: Enter the amount from Box 1 on Schedule A (Form 1040), line 8a. Add points from Box 6 if applicable.
- Limits: For loans after December 15, 2017, deduction is limited to interest on up to $750,000 of debt ($375,000 if married filing separately). Older loans may qualify for up to $1 million.
- Mortgage Insurance: Box 5 amounts may be deductible if your AGI is below certain thresholds (phased out above $100,000 for joint filers).
- Reporting Refunds: Subtract Box 4 from prior deductions or report as income if previously deducted.
- Software or Professional Help: Use tax software like TurboTax or consult a CPA to ensure compliance.
Always keep records, as the IRS may request verification. For more on deductions, see IRS Publication 936, Home Mortgage Interest Deduction.
Deadlines and Filing Requirements
- Recipient Deadline: Lenders must furnish Copy B to borrowers by January 31.
- IRS Filing: Lenders file with the IRS by February 28 (paper) or March 31 (electronic). Electronic filing is required for 10 or more returns, per recent updates.
- Your Taxes: Use the form when filing your return by April 15 (or extension deadline).
For 2026 filings (2025 tax year), use the April 2025 revision of Form 1098, as it’s a continuous-use form until superseded.
Recent Updates for 2026
As of February 2026, key changes include:
- E-Filing Threshold: Reduced to 10 returns, encouraging digital submissions via the IRS’s Information Returns Intake System (IRIS).
- Continuous-Use Revisions: The April 2025 version applies for 2026 and beyond, with no major structural changes noted.
- No New Legislation Impacts: Check IRS.gov for any post-publication updates, but current instructions emphasize reporting mortgage insurance premiums under section 163(h)(3)(E).
Common FAQs About IRS Form 1098
What if I don’t receive Form 1098?
Contact your lender. You can still deduct interest using your records, but the form simplifies verification.
Can I deduct all interest reported?
Not necessarily—limits apply based on loan type, amount, and use (e.g., home improvement vs. personal expenses).
Is Form 1098 required for home equity loans?
Yes, if interest meets the $600 threshold and the loan is secured by real property.
What about rental properties?
Interest on rentals is reported on Schedule E, not A, and Form 1098 still applies.
Where can I download a sample?
Visit https://www.irs.gov/pub/irs-pdf/f1098.pdf for the info copy.
For personalized advice, consult a tax professional. This guide is based on official IRS publications and is not a substitute for professional tax guidance. Stay updated by visiting IRS.gov regularly.