The 1098 is a form your mortgage lender or student loan servicer sends you each year to report interest you paid

The 1098 form is a tax document that reports money you paid in interest during the year. Your lender — whether a bank, mortgage company, or student loan servicer — is required by the IRS to send you this form by January 31st. The form exists so the IRS can verify that you paid what you claim on your tax return.

There are several types of 1098 forms, each tied to a different kind of loan. A 1098-T reports education expenses and student loan interest. A 1098-H reports mortgage insurance premiums. The most common is the 1098 (or 1098-MT), which reports mortgage interest paid on a home loan. Each one serves the same purpose: documenting money you spent that may reduce your taxable income.

You do not have to do anything when you receive a 1098. The lender sends a copy to you and a copy to the IRS automatically. Your job is to check that the numbers match your records, and then use the information when you file your tax return — if you choose to itemize deductions rather than take the standard deduction.

Key Takeaways

  • A 1098 form reports interest you paid on a mortgage, student loan, or other may have access to debt during the tax year.
  • Your lender sends the 1098 to both you and the IRS by January 31st each year; you do not need to request it.
  • The interest reported on a 1098 may reduce your taxable income only if you itemize deductions instead of taking the standard deduction.
  • You should verify the amounts on your 1098 match your loan statements and contact your lender immediately if there are errors.

What information appears on a 1098

A 1098 lists specific dollar amounts in numbered boxes. Box 1 shows the total mortgage interest you paid that year. Box 2 shows points paid on the mortgage (a one-time fee some borrowers pay to lower their interest rate). Box 3 shows the outstanding principal on your mortgage as of January 1st. Box 4 shows the address of the property the loan is for.

Different 1098 variants include different boxes. A 1098-T for education includes boxes for may have access to tuition, fees, and student loan interest. A 1098-H for mortgage insurance includes the amount of insurance premiums paid. The form also lists your lender's name, address, and tax ID number, plus your name, address, and Social Security number so the IRS can match it to your return.

At the top of the form, you will see the tax year the 1098 covers — for example, "2024" — and the date the lender issued it. Always check that the year matches the tax return you are filing. A 1098 issued in January 2025 covers the 2024 tax year and belongs on your 2024 return, not your 2025 return.

When you can use a 1098 to reduce your taxes

The interest reported on a 1098 reduces your taxable income only if you itemize deductions on your tax return. Itemizing means listing out individual deductions — mortgage interest, property taxes, charitable donations, and others — instead of taking the standard deduction (a flat amount the IRS allows everyone).

For most people, the standard deduction is larger than the total of their itemized deductions, so they do not benefit from reporting the 1098 interest. In 2024, the standard deduction was $14,600 for single filers and $29,200 for married couples filing jointly. If your mortgage interest plus other deductions do not exceed these amounts, itemizing will not help you.

If you do itemize, you report the mortgage interest from Box 1 of your 1098 on Schedule A (the form where itemized deductions go), which attaches to your Form 1040. Student loan interest from a 1098-T works differently — you can deduct up to $2,500 of it even if you take the standard deduction, as long as your income is below certain limits.

What to do if you receive a 1098 with errors

Compare the amounts on your 1098 to your monthly loan statements. Add up the interest you paid each month and verify it matches Box 1. Check that the property address and your personal information are correct. If you find a mistake, contact your lender's customer service department right away — do not wait until tax time.

Your lender has until January 31st to issue the 1098, but they can issue a corrected form (called a corrected 1098) at any time before you file your return. Ask the lender to issue a corrected 1098 and confirm they will send the corrected version to the IRS as well. Keep both the original and corrected forms until you file, in case the IRS asks about the discrepancy.

If you file your return before receiving a corrected 1098, you can file an amended return (Form 1040-X) once you have the correct information. This is not ideal but is straightforward — you report the corrected amounts and the IRS recalculates your refund or balance owed.

Why the IRS receives a copy of your 1098

The IRS uses the 1098 forms lenders send to verify that taxpayers are reporting the correct income and deductions. When you file your return, the IRS compares the interest you claim to the interest your lender reported. If the numbers do not match, the IRS may contact you to explain the difference.

This matching process is automated and happens after you file. If there is a legitimate reason for the difference — for example, you paid off the loan mid-year and the lender's records did not reflect your final payment — you can explain it if the IRS asks. Keeping your 1098 and your loan statements together makes this process simple.

Different types of 1098 forms and what they cover

The 1098 or 1098-MT reports mortgage interest on a home loan. The 1098-T reports may have access to education expenses and student loan interest paid during the year. The 1098-H reports mortgage insurance premiums (PMI) paid on a home loan. The 1098-Q reports payments from a may have access to tuition program (a 529 plan). Each form goes to a different type of borrower, but all serve the same purpose: documenting money you spent that may affect your taxes.

If you have multiple loans, you may receive multiple 1098 forms. A homeowner with a mortgage and student loans will receive both a 1098 and a 1098-T. A person who paid for college and also has a mortgage will receive a 1098-T and a 1098. The forms are separate because they report different types of interest and are used in different places on your tax return.

Frequently Asked Questions

Do I have to itemize deductions to benefit from my 1098?

Not always. If you have a 1098-T for student loan interest, you can deduct up to $2,500 of that interest even if you take the standard deduction. For mortgage interest on a 1098, you must itemize deductions to claim it. Most people do not itemize because the standard deduction is larger.

What if I did not receive my 1098 by February?

Contact your lender and ask them to resend it or provide a copy. You can also file your return without the 1098 if you have your own records of the interest paid, though the IRS may ask you to verify the amount later. Do not delay filing your return waiting for the form.

Can I use a 1098 from a previous year on this year's tax return?

No. A 1098 covers only the tax year printed on it. A 1098 issued in January 2025 covers 2024 and goes on your 2024 return. You must use the 1098 from the year you are filing for.

What happens if my lender sends the wrong 1098 to the IRS?

Ask your lender to issue a corrected 1098 and send it to the IRS. The IRS will update their records with the corrected information. If you have already filed, you do not need to amend your return unless the corrected amount changes the deductions you claimed.

Do I need to attach my 1098 to my tax return?

No. You keep the 1098 for your records but do not send it with your return. The IRS already has a copy from your lender. You only report the amounts from the 1098 on the appropriate line of your tax return (Schedule A for mortgage interest, or the student loan interest line on Form 1040).