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- How Do I File Income Tax Form 1098: Mortgage Interest Statement?
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Mortgage interest can be one of your biggest deductions at tax time. In most cases, your lender will provide your total mortgage interest payments and other information at the end of each year on a Form 1098, Mortgage Interest Statement. The lender must have the statement in the mail by Feb. 15 or by the following business day if Feb. 15 falls on a weekend or holiday.
The Form 1098 will include the total amount of mortgage interest you paid during the calendar year. It also will report the deductible amount of any mortgage point payments applied to your loan during the year. If your lender paid any deductible property taxes for you, this amount also will be on the statement.
In some cases, a lender does not have to provide you with a 1098, such as when you paid less than $600 on a single mortgage. Another exception applies if you are buying the home through owner financing. The seller does not have to issue a 1098 if selling and financing homes is not part of his regular job. Also, lenders do not have to report interest on loans for homes such as mobile homes or boats that are not permanently attached to real estate, even though you can deduct the interest if those places are your primary or secondary residence.
If you gave the lender permission to notify you electronically, the same deadline applies. Your statement must be sent to you by email or posted on a website by Feb. 15 or the next business day if Feb. 15 falls on a weekend or holiday. If you gave permission to get the form electronically but you still want a paper copy, you can ask the lender for a hard copy.
Internal Revenue Service Filing
The lender normally must send of copy of the 1098 to the Internal Revenue Service by Feb. 28 -- or April 1 if filing electronically. The lender also may ask for up to two 30-day extensions to file, although sufficient reason must be given for the second extension.
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