Form 1098: Mortgage Interest Statement
Definition: Form 1098 is an IRS information return issued by lenders (banks, mortgage servicers) to report mortgage interest of $600 or more paid during the year on real estate loans—plus points paid, refundable overpayments, and real estate taxes (if escrowed). Homeowners use it to claim deductions.
Why It Matters: Deductible mortgage interest (on up to $750K acquisition debt for post-2017 loans) reduces AGI on Schedule A (itemized deductions), potentially saving thousands. Points and property taxes may also qualify. Mismatches trigger CP2000 notices; errors in escrows or refinances forfeit savings. If high interest has strained your budget without full relief or led to IRS debt, Omni Tax Help verifies your 1098 against loan statements, allocates points over loan life, coordinates with Schedule A limits, and amends returns—maximizing deductions and resolving disputes to lower tax or ease collections.
Key Boxes:
- Box 1: Mortgage interest received (primary deduction).
- Box 2: Outstanding mortgage principal.
- Box 5: Real estate taxes (if paid via escrow).
What to Do Next:
- Gather from all lenders (primary, HELOC, refi).
- Report on Schedule A Line 8a; prorate points if paid.
Current Revision
Instructions for Form 1098 (Print Version PDF)
View all form revisions here: All Form 1098 Revisions