KrisD15
Expert Alumni

Deductions & credits

Form 1098 is for reporting Home Mortgage Interest you paid the lender, such as a bank.

The amount of interest you paid for the year is listed in Box 1.

 

Your Lender (or bank) sends a copy of the 1098 to you and a copy to the IRS.

SOMETIMES they also report the property tax they paid on your behalf if you "escrow" your tax payments with the lender (if your mortgage payment includes property tax). Sometimes Lenders have their clients send in extra money to cover property taxes and even insurance, and some Lenders only collect the mortgage principal and interest. 

 

If your Lender also collects property tax from you, it is USUALLY listed in Box 10.

 

 

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