What Is Form 1098: Mortgage Interest Statement?

Posted Feb 10, 2022


Tax time typically brings a horde of paperwork in the mail. In addition to the common W2 and many iterations of Form 1099, there are other tax documents you might receive as well.

Homeowners who pay more than $600 annually in mortgage interest will receive a Form 1098: Mortgage Interest Statement in the mail from their lender. This form denotes the amount of money homeowners have paid in mortgage interest for the year. Less commonly, the form also is used when you receive interest from a sole proprietorship or individual during the course of running your business.

Below we’ll look at the information contained in Form 1098, how to use it, and why it’s important.

What To Do With Form 1098: Mortgage Interest Statement

In addition to the money you paid in mortgage interest, the form is also used to report mortgage insurance premiums and points to the IRS and taxpayers. If you refinanced and had more than one mortgage during the course of the calendar year, you’ll receive a Form 1098 from each lender. The form should arrive by mail sometime in mid to late January, or you should receive an email from your lender with instructions on how to access and download the form from their website.

Form 1098 also includes your taxpayer ID, name and address, mortgage insurance premiums, and points paid on the residence. Once you receive this form, you can use it to figure out your mortgage interest deduction as part of your overall itemized deductions on Schedule A of your Form 1040 tax return. 

It’s important to note that if you take the standard deduction, you can’t take the itemized deduction, making Form 1098 moot. For 2021, standard deductions are as follows:

  • $25,100 for married couples filing jointly
  • $12,550 for individuals and married couples filing separately
  • $18,800 for heads of household¹

Consult with your tax professional about which option works best for your tax situation.

Mortgage Interest on Rental Properties

Investors with rental properties can deduct mortgage interest as part of the expenses associated with renting out the property. You’ll file this amount on Schedule E of your Form 1040, which is used to report any income and losses from your rental properties. If you paid any points on the mortgage of your rental, you can deduct these as well; however, you’ll have to deduct them during the total life of the loan. It can be difficult to determine this deduction, so consult a certified tax professional to ensure you deduct the proper amount.

The Bottom Line

If you are a homeowner who is claiming itemized deductions, you don’t need to attach a Form 1098 to your tax return – the IRS already has this information. If you do your own taxes, input Box 1, deductible mortgage interest, into line 8a of your Form 1040. If you have a tax professional handle your return, he or she is likely well-versed on where this information is entered – and whether you're better off taking the mortgage interest deduction or the standard deduction.

Real estate investors can deduct mortgage interest from their rental properties, but it’s done through Schedule E and not standard itemized deductions. Taxes can be complicated. Working with a qualified tax professional alleviates much of the uncertainty and ambiguity associated with filing a tax return.


1.  IRS provides tax inflation adjustments for tax year 2021, irs.gov, https://www.irs.gov/newsroom/irs-provides-tax-inflation-adjustments-for-tax-year-2021

This material is for general information and educational purposes only. Information is based on data gathered from what we believe are reliable sources. It is not guaranteed as to accuracy, does not purport to be complete and is not intended to be used as a primary basis for investment decisions. It should also not be construed as advice meeting the particular investment needs of any investor. Realized does not provide tax or legal advice. This material is not a substitute for seeking the advice of a qualified professional for your individual situation.

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