Form 1098 is an IRS tax form used to report mortgage interest of $600 or more received by a lender from a borrower during a tax year. It provides details such as the amount of interest paid, the mortgage origination date, and the borrower’s personal information.
The form is primarily utilized by lenders, including banks and mortgage companies, to report the interest payments made on a mortgage that can potentially be deducted by the borrower when filing their income tax return. Borrowers may use the information on Form 1098 to claim deductions for mortgage interest on their Schedule A (Form 1040) if they itemize their deductions.
Additionally, Form 1098 can also pertain to other types of expenses such as student loan interest payments, reported on a specific variant of the form known as Form 1098-E.
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