What is Form 1098?
Form 1098, also known as the Mortgage Interest Statement, is a tax document that lenders provide to homeowners who pay $600 or more in mortgage interest, insurance premiums, or points during the year. It contains important information such as the total interest paid, outstanding mortgage principal, and any points or insurance premiums. This form is essential for homeowners looking to claim their mortgage interest deduction on their taxes, as it assists them in itemizing their expenses and potentially lowering their taxable income.
What is Form 1098 used for?
Form 1098 is important for homeowners. Here’s what it’s used for:
- Reporting Mortgage Interest: Reports mortgage interest of $600 or more received during the year.
- Tax Deduction: Assists homeowners in deducting mortgage interest on tax returns.
- Lender and Borrower Information: Includes names, addresses, and taxpayer identification numbers for both parties.
- Related Expenses: Reports mortgage insurance premiums and points paid on a principal residence.
How to fill out Form 1098?
- 1
Enter the lender's name, address, phone number, and taxpayer identification number.
- 2
Fill in the borrower's name, address, and taxpayer identification number.
- 3
Report the total mortgage interest received, including points and mortgage insurance premiums.
- 4
Include details about the mortgage, such as the outstanding principal, origination date, and any refunds.
- 5
Provide the property address or description and the number of properties securing the mortgage.
- 6
Download the completed form for mailing by January 31 and e-filing with the IRS by March 31.
Who is required to fill out Form 1098?
Lenders and qualified persons designated by interest recipients are responsible for completing Form 1098. This includes reporting mortgage interest received during the year when it exceeds $600.
Taxpayers use Form 1098 to report mortgage interest paid and claim a tax deduction. It helps them document the interest paid, essential for tax returns.
When is Form 1098 not required?
Form 1098 is not required when a lender receives less than $600 in interest, mortgage insurance premiums, or points. Additionally, if the interest comes from a corporation, partnership (excluding sole proprietorship), trust, estate, association, or company, it doesn’t need to be reported on this form. Always check your specific situation to confirm reporting requirements.
When is Form 1098 due?
The deadline for Form 1098 is January 31, 2025, for providing copies to recipients. If you are filing on paper, the due date is February 28, 2025, for the 2024 tax year. For electronic filing, the deadline is March 31, 2025. Make sure to meet these deadlines to avoid any issues with your tax reporting.
How to get a blank Form 1098?
To obtain a blank Form 1098, Mortgage Interest Statement, simply visit our platform where the IRS-issued form is already pre-loaded in our editor. Remember, PDF Guru aids in filling and downloading forms, but we do not support filing them.
Do you need to sign Form 1098?
No, you do not need to sign Form 1098. This form must be signed and dated by an authorized officer of the mortgage lender, not the borrower. For the most accurate information, it’s always a good idea to check the latest updates related to tax forms. With PDF Guru, you can fill out the form and download it for your records, but remember, we do not support submission.
Where to file Form 1098?
To submit Form 1098, the Mortgage Interest Statement, mail the completed form to the IRS. Ensure you follow the IRS’s specific mailing instructions.
Remember, Form 1098 cannot be filed online. Check the IRS guidelines for the correct mailing addresses to avoid delays.
