How Do I File Income Tax Form 1098: Mortgage Interest Statement?
- 1). Contact your mortgage lender after the first of every January. Lenders are required to send out 1098 forms before by January 31. You can speed this process up by contacting your lender shortly after the new year.
- 2). Collect all mortgage statements for the previous year. You'll want to verify the accuracy of the 1098 by comparing it to all previous mortgage statements--these will show mortgage interest paid each month.
- 3). Obtain Form 1098 and compare it to the sum of all 12 months of mortgage interest payments. If there is any discrepancy, make sure to contact your lender.
- 4). Fill out your Form 1040 as you normally would. Obtain a blank Schedule A form. This will be used for deductions for taxes paid and interest paid.
- 5). Add together the mortgage interest you paid and the mortgage points you paid the previous year. Do this by adding together the sums found on Lines 1 and 2 on Form 1098. Then, report this sum on Line 10 of the Schedule A. This will go toward reducing your total tax liability.