Form 1098 is the document your mortgage lender sends you each January to report the interest you paid on your home loan during the previous year

The Form 1098, officially called the Mortgage Interest Statement, lists how much mortgage interest and property taxes you paid in the calendar year. Your lender is required by the IRS to send you a copy and file a copy with the government. You use the information on this form to claim the mortgage interest deduction on your tax return — one of the largest deductions available to homeowners.

You will receive Form 1098 only if you paid $600 or more in mortgage interest during the year. If you paid less, your lender does not have to send it, though you can still deduct the interest if you have other proof, such as your monthly statements. The form arrives by January 31 each year for the prior year's payments.

Form 1098 is not the same as a 1099 form. A 1099 reports income; a 1098 reports interest paid and property taxes paid. You do not report the 1098 itself on your return — instead, you use the numbers from it to fill in the mortgage interest line on Schedule A (Itemized Deductions) or to calculate your deduction using the standard deduction rules that explore to your filing status.

Key Takeaways

  • Form 1098 shows mortgage interest and property taxes you paid, sent by your lender by January 31 for the prior calendar year.
  • You receive it only if you paid $600 or more in mortgage interest; below that threshold, the lender is not required to send it.
  • The form lists interest paid, property taxes paid, and points paid on the mortgage, each on a separate line.
  • You use Form 1098 data to claim the mortgage interest deduction on Schedule A if you itemize deductions.
  • If you do not receive Form 1098 by early February, contact your lender directly — the IRS does not send replacement copies.

Where to find each line on Form 1098

Box 1 (Mortgage Interest Received) shows the total interest you paid on your mortgage during the year. This is the number you will use most often. It includes interest on your primary mortgage, second mortgage, or home equity line of credit — as long as the debt is secured by your home and you itemize deductions.

Box 2 (Original Principal of Mortgage) is the original loan amount when you first took out the mortgage. This box is informational and does not go on your tax return; it helps you verify that the form is for the right loan.

Box 3 (Refund of Overpaid Interest) appears only if your lender refunded you interest during the year — for example, if you paid off the loan early or made an overpayment. This is rare and most forms leave it blank.

Box 4 (Property Taxes Paid) lists the property taxes your lender paid on your behalf from your escrow account. If you pay property taxes directly to your county, this box will be blank, and you will report your actual tax payments instead. If your lender paid them, use this number.

Box 5 (Points Paid) shows any discount points you paid to reduce your interest rate at closing. Points are treated as prepaid interest and can be deducted in the year you paid them (if you bought the home) or deducted over the life of the loan (if you refinanced). The form tells you which applies.

When you do not receive Form 1098

If you paid less than $600 in mortgage interest during the year, your lender is not required to send Form 1098. This often happens in the first year of a mortgage, when most of your early payments go toward principal, or in the final year when the loan balance is nearly paid off. You can still deduct the interest — you just need to calculate it yourself using your monthly statements.

If you paid $600 or more and do not receive the form by February 15, contact your lender's customer service department directly. Provide your loan number and ask them to send a copy or confirm they filed it with the IRS. The IRS does not issue replacement 1098 forms; your lender is responsible for sending it.

If your lender goes out of business or you cannot reach them, you can reconstruct the interest from your monthly statements or loan payoff documents. Keep records of what you paid so you can support your deduction if the IRS asks.

How to use Form 1098 on your tax return

To claim the mortgage interest deduction, you must itemize deductions on Schedule A rather than take the standard deduction. For the 2024 tax year, the standard deduction is $14,600 for single filers and $29,200 for married filing jointly. If your mortgage interest plus other deductions (property taxes, state income taxes, charitable donations, medical expenses) add up to more than the standard deduction, itemizing saves you money.

On Schedule A, line 8 is labeled "Mortgage Interest and Points Reported on Form 1098." You enter the amount from Box 1 of your Form 1098 here. If you have multiple mortgages or home equity lines of credit, add up all the interest from all your 1098 forms and enter the total.

There is a limit: you can deduct mortgage interest only on up to $750,000 of mortgage debt ($375,000 if married filing separately). If you borrowed more than that, only the interest on the first $750,000 counts. Your lender does not calculate this for you — if your loan is larger, you will need to figure out how much of your interest applies to the deductible portion.

Property taxes are claimed on a separate line of Schedule A (line 5a). The limit for property taxes is $10,000 per year, combined with state income taxes and sales taxes. If you live in a high-tax state, you may hit this cap before you use all your property tax payments.

Common mistakes when using Form 1098

The most common error is assuming you can deduct mortgage interest without itemizing. You cannot. If you take the standard deduction, the mortgage interest deduction is already built in and you do not list it separately. Itemizing only makes sense if your total deductions exceed the standard deduction for your filing status.

Another mistake is deducting interest on a home equity loan used for something other than home improvement. The interest is deductible only if the loan is secured by your home and the money was used to buy, build, or improve the home. If you borrowed against your home equity to pay off credit cards or buy a car, that interest does not count.

Some people also forget to check the numbers on Form 1098 against their own records. If the interest amount seems wrong — too high or too low — compare it to your monthly statements. Lenders make mistakes. If the form does not match your records, contact the lender and ask for a corrected form (Form 1098-X) before you file your return.

Finally, do not assume that the property tax amount on Box 4 is the only property tax you can deduct. If your lender did not pay all your property taxes from escrow, or if you paid taxes directly to your county, you can deduct the full amount you actually paid, up to the $10,000 limit. Use the amount from Box 4 plus any additional taxes you paid yourself.

What happens if Form 1098 is wrong

If the interest amount, property tax amount, or other information on Form 1098 does not match your records, ask your lender to issue a corrected form. The corrected form is called Form 1098-X (Corrected Mortgage Interest Statement). Your lender should send the corrected form to you and file it with the IRS.

Do not file your tax return using the wrong numbers and then correct it later. Wait for the corrected form if one is coming, or contact the IRS if your lender refuses to correct an error. If you file with incorrect numbers and the IRS catches the mistake, you may owe additional tax plus penalties and interest.

If you discover the error after you have already filed, you can file an amended return (Form 1040-X) to correct your deduction. You have three years from the original filing date to amend.

Frequently Asked Questions

Do I need Form 1098 to deduct mortgage interest?

No. If you paid less than $600 in interest or your lender did not send the form, you can still deduct the interest using your monthly statements or loan documents as proof. Form 1098 is a convenience, not a requirement. However, you must itemize deductions to claim any mortgage interest deduction at all.

Can I deduct mortgage interest if I take the standard deduction?

No. The standard deduction is a single number that covers all deductions, including mortgage interest. If you take the standard deduction, you cannot also list mortgage interest separately. You must itemize deductions on Schedule A to claim mortgage interest as a separate line item.

What if I paid off my mortgage early during the year?

Your lender will report only the interest you actually paid through the payoff date. If you paid off the loan in June, Box 1 will show interest for January through June only. You deduct only what you paid, not what you would have paid for the full year.

Does Form 1098 include interest on a home equity line of credit?

It depends on how the lender reports it. Some lenders send a separate Form 1098 for a home equity line of credit; others combine it with your primary mortgage on one form. Check all your forms from your lender and add up the interest from each one if you have multiple loans.

What if my lender sent Form 1098 but I paid the mortgage through a different company?

The company that owns the mortgage sends Form 1098, not the company that processes your payments. If you made payments to a servicer but the mortgage was sold or transferred, the current owner files the form. The form will show the correct lender's name and address. If you are unsure who owns your mortgage, check your monthly statement or contact your servicer.