The 1098 is a form your lender sends you showing how much mortgage interest and property taxes you paid
The Form 1098 is a document your mortgage lender mails to you each January. It reports the mortgage interest and property taxes you paid during the previous year. You receive it because the IRS requires lenders to send this information to both you and the tax agency — it is how the government tracks whether you are reporting the same numbers on your own tax return.
You do not have to do anything with the 1098 when it arrives. You keep it with your tax records. If you itemize deductions on your tax return (rather than taking the standard deduction), you will use the numbers from this form to claim deductions for mortgage interest and property taxes paid.
The 1098 is one of several forms lenders and financial institutions send out each tax season. It is different from a 1099 form, which reports other types of income or payments. The 1098 specifically tracks money you paid out, not money you received.
Key Takeaways
- Your mortgage lender sends you a 1098 form by January 31 each year, showing mortgage interest and property taxes you paid the previous year.
- The form is informational — you keep it with your records and use it only if you itemize deductions instead of taking the standard deduction.
- The 1098 reports what you paid out, not income you received, which is why it appears on a different form than 1099s.
- The IRS receives a copy of your 1098 from your lender, so the numbers must match what you report on your tax return.
- Not all homeowners receive a 1098 — you get one only if you paid mortgage interest during the year.
What information appears on the 1098
The 1098 has several boxes, but most homeowners focus on two: Box 1 shows the mortgage interest you paid, and Box 10 shows property taxes your lender paid on your behalf (if your lender handles tax payments through escrow). These are the numbers you would use if you itemize deductions.
Other boxes on the form report mortgage insurance premiums, points paid on a mortgage, and the outstanding principal balance of your loan. Your lender fills in all of these automatically based on your loan records. You do not calculate or verify these numbers yourself — the lender provides them.
The form also includes your loan account number and your lender's name and address. This information helps you match the 1098 to the correct mortgage if you have more than one property or loan.
Who receives a 1098 and who does not
You receive a 1098 only if you paid mortgage interest during the year. If you paid off your mortgage completely, you will still receive a 1098 for that final year. If you did not pay any interest — for example, because you own your home outright or because your interest payments were extremely small — your lender may not send one.
Renters do not receive a 1098 because they do not pay mortgage interest. If you are a homeowner but your mortgage is held by a bank or lender that does not report to the IRS, you may not receive one, though this is rare for conventional mortgages.
If you have a second mortgage, home equity line of credit, or home equity loan, you may receive separate 1098 forms from each lender. Each form reports only the interest and taxes related to that specific loan.
How to use the 1098 when filing your taxes
The 1098 matters only if you itemize deductions. Most people take the standard deduction instead, which means they do not report individual deductions like mortgage interest. If you take the standard deduction, you do not need to reference the 1098 at all — just keep it with your records in case the IRS asks questions later.
If you do itemize, you will report the mortgage interest from Box 1 of your 1098 on Schedule A of your tax return. You would also report property taxes from Box 10 (or from your own records if your lender does not pay them). These deductions reduce your taxable income, which can lower your tax bill.
Whether itemizing makes sense depends on your total deductions. If your mortgage interest plus property taxes plus other deductions (charitable giving, state income taxes, and so on) add up to more than the standard deduction for your filing status, itemizing saves you money. Many homeowners find that the standard deduction is larger, so they do not itemize.
Matching your 1098 to your actual payments
The numbers on your 1098 should match what you actually paid. If you made 12 monthly payments and paid extra toward principal, the interest portion of those payments should appear on the form. If you paid property taxes through your lender's escrow account, those should be reported in Box 10.
Sometimes the 1098 does not match your records. This can happen if you made a payment late, if you paid off the loan partway through the year, or if your lender made an error. If the numbers seem wrong, contact your lender and ask for a corrected form — they can issue a corrected 1098 if needed.
Keep your monthly mortgage statements alongside your 1098. If the IRS ever questions your deductions, you can show both documents to prove you paid what you reported.
When you might not receive a 1098
If you paid less than $600 in mortgage interest during the year, your lender may not be required to send a 1098. This happens most often in the final year of a mortgage when the balance is very low. You can still deduct the interest you paid — ask your lender for a statement showing how much interest you paid, and use that number on your tax return.
If you refinanced your mortgage during the year, you may receive two 1098 forms: one from your original lender and one from your new lender. Each covers only the months you had that loan. Both numbers should be reported on your tax return if you itemize.
If you do not receive a 1098 by early February, contact your lender. They are required to send it by January 31, but delays happen. Request a copy or ask them to issue a corrected form if information has changed.
The difference between the 1098 and other tax forms
The 1098 reports money you paid out (mortgage interest and property taxes). A 1099 form reports money you received — interest from a savings account, income from freelance work, or distributions from retirement accounts. These are opposite types of information, which is why they use different form numbers.
A 1098-T is a different form altogether — it reports education expenses and is sent by colleges and universities, not lenders. A 1098-C reports charitable vehicle donations. The "1098" prefix means the form is about money paid out or expenses incurred, while the number after tells you what type of expense.
You may receive multiple 1098 forms in a single tax year if you have multiple mortgages, multiple properties, or education expenses. Each form goes in a separate place on your tax return or schedule.
Frequently Asked Questions
Do I have to report the 1098 on my tax return?
Only if you itemize deductions. If you take the standard deduction, you do not report the 1098 numbers on your return. Keep the form with your records in case you are audited. The IRS receives a copy from your lender, so they know you received it.
What if the 1098 shows a different amount than I paid?
Contact your lender and ask them to review the calculation. If an error occurred, they will issue a corrected 1098. If the difference is because you made extra payments or paid off the loan early, the form is correct — it reports only the interest you actually paid during that year.
Can I deduct mortgage interest if I do not receive a 1098?
Yes. If your lender did not send a 1098 (usually because you paid less than $600 in interest), you can request a statement from them showing how much interest you paid. Use that amount on your tax return if you itemize deductions.
Do I need the 1098 to file my taxes?
Not necessarily. If you take the standard deduction, you do not need it to file. If you itemize, you need the information from it, but you can also use your own records or a statement from your lender if the 1098 is delayed or incorrect.
What happens if I lose my 1098?
Contact your lender and request a duplicate copy. They keep records and can send you another one. You can also file your tax return without it if you have other documentation of the interest you paid, though having the official form is simpler.