Breaking Down Your Year-End Mortgage Tax Forms
Ahh… the end of the year. A time for celebrations, resolutions and mortgage interest statements.
If you're not excited for your mortgage tax documents, you should be, if only for the mortgage interest deduction. Your year-end mortgage statement will have the details that let you itemize your taxes to deduct any mortgage interest you paid from your income. There are some additional rules beyond that, which is why it's essential to consult with a tax professional, but you should at least be happy to see that mortgage tax form arrive in your mailbox.
What can you expect from your mortgage interest statement (1098)? We’re here to give you the full rundown on this end-of-year document:
What Is a Mortgage Interest Statement (1098)?
A year-end statement, (also known as IRS tax form 1098) is essentially a status update on a mortgage. It’s a document that is sent out and shows how much mortgage interest, mortgage points and property taxes have been paid by the borrower that year. It also includes how much the borrower has left on their mortgage. You can find a sample form here.
When to Expect Your Mortgage Interest Statement
It’s common to receive multiple 1098 forms from any mortgage company or loan servicer that you paid mortgage interest, points, or taxes in a tax year. While each company has their own mail delivery method, all are required to be sent out by January 31. Some companies may even offer digital copies of your statement.
If your loan has servicing has been retained by Guaranteed Rate and you have made payments online, you can access your form at our servicing portal.
Mortgage Interest Tax Deduction
Using a Form 1098 Mortgage Interest Statement
You can claim the mortgage interest you’ve spent on your home for a deduction when you file your federal income taxes.
Here is the catch though: to be able to claim the deduction, you’ll need to itemize your taxes instead of taking a standard deduction. When you do this, you may be able to claim a tax break on up to two homes in which you’ve paid the lender $600 or more.
Need More Information on the Mortgage Interest Tax Deduction?
If you’re looking to learn more or have any specific questions about your year-end statement, don’t hesitate to reach out to your loan servicer to help you track down any info needed.
Guaranteed Rate does not provide tax advice. Please contact your tax adviser with any tax related questions.
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