1098 Form 2023 - 2024
It includes detailed explanations, comparison tables, and frequently asked questions to help taxpayers navigate the 1098 form effectively.
Contents
Definition
The 1098 form, also known as the “Mortgage Interest Statement,” is a tax form used by mortgage lenders to report mortgage interest payments made by a borrower throughout the year.
Purpose
The primary purpose of the 1098 form is to assist taxpayers in claiming deductions for mortgage interest paid, ultimately reducing their taxable income.
Comparing the 1098 Form with Other Tax Forms
To better understand the 1098 form, let’s compare it with two other common tax forms: the 1099-INT and the 1098-E.
| Tax Form | Purpose | Key Information Provided |
|---|---|---|
| 1098 Form | Report mortgage interest payments | Mortgage interest total |
| 1099-INT Form | Report interest income from various sources | Interest income total |
| 1098-E Form | Report student loan interest payments | Student loan interest total |
Comparing Different Types of 1098 Forms
| Aspect | 1098-Mortgage Interest | 1098-Tuition | 1098-E Student Loan Interest |
|---|---|---|---|
| Purpose | Mortgage interest deductions | Educational expenses deductions | Student loan interest deductions |
| Issued by | Mortgage lenders | Educational institutions | Student loan servicers |
| Information Included | Mortgage interest details | Tuition and related expenses | Student loan interest details |
| Tax Deductions Eligible | Mortgage interest deduction | Education tax credits | Student loan interest deduction |
Who Should File a 1098 Form?
The obligation to file a 1098 Form varies depending on the type of form and the entity involved. Here’s a brief overview:
Individuals
- Individuals who have paid interest on a qualified student loan should receive Form 1098-E from their lender.
Educational Institutions
- Educational institutions must issue Form 1098-T to students who have incurred qualified educational expenses.
Charitable Organizations
- Charitable organizations receiving contributions of motor vehicles, boats, or airplanes must file Form 1098-C.
Mortgage Lenders
- Mortgage lenders are required to furnish Form 1098-MA to homeowners who have received mortgage assistance payments.
Here’s a comparison table outlining the key differences between the various 1098 forms:
| Form Type | Purpose | Recipient | Reporting Threshold |
|---|---|---|---|
| 1098-E | Student Loan Interest | Borrowers | $600 or more |
| 1098-T | Tuition Expenses | Students | Varies |
| 1098-C | Charitable Contributions | Donors | $500 or more |
| 1098-MA | Mortgage Assistance | Homeowners | $600 or more |
