Form 1098

AAA

DEFINITION of 'Form 1098'

A form filed with the Internal Revenue Service (IRS) that details the amount of interest and mortgage-related expenses paid on a mortgage during the tax year. These expenses can be used as deductions on a U.S. income tax form, Schedule A, which reduces taxable income and the overall amount owed to the IRS. The mortgage lender is required by the IRS to provide this form to borrowers.

INVESTOPEDIA EXPLAINS 'Form 1098'

There are several additional 1098 Forms:

1. 1098-C details the donations of vehicles, boats and airplanes
2. 1098-E is for the interest paid on qualified student loans
3. 1098-T details tuition and related fees during the year.

Each of these forms is filed with the IRS and specific information or amounts on each of the forms are added into your tax return, which are used as deductions to reduce taxable income.

RELATED TERMS
  1. Itemized Deduction

    A deduction from a taxpayer's taxable adjusted gross income that ...
  2. Schedule A

    A U.S. income tax form used by taxpayers to report itemized deductions, ...
  3. 1040 Form

    The standard Internal Revenue Service (IRS) form that individuals ...
  4. Adjusted Gross Income - AGI

    A measure of income used to determine how much of your income ...
  5. Internal Revenue Service - IRS

    A United States government agency that is responsible for the ...
  6. Deduction

    Any item or expenditure subtracted from gross income to reduce ...
Related Articles
  1. Credit & Loans

    Is the interest on my student loan tax ...

  2. Taxes

    Tax Deductions On Mortgage Interest

  3. Retirement

    Non-Cash Contribution Rules Could Cut ...

  4. Taxes

    What's the difference between cost of ...

Hot Definitions
  1. Capitulation

    When investors give up any previous gains in stock price by selling equities in an effort to get out of the market and into ...
  2. Turkey

    Slang for an investment that yields disappointing results or turns out worse than expected. Failed business deals, securities ...
  3. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  4. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  5. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  6. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
Trading Center