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. 1040 Form

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

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

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

    Any item or expenditure subtracted from gross income to reduce ...
  5. Tax Return

    1. The tax form or forms used to file income taxes with the Internal ...
  6. Itemized Deduction

    A deduction from a taxpayer's taxable adjusted gross income that ...
Related Articles
  1. Tax Deductions On Mortgage Interest
    Taxes

    Tax Deductions On Mortgage Interest

  2. Non-Cash Contribution Rules Could Cut ...
    Retirement

    Non-Cash Contribution Rules Could Cut ...

  3. Saving Money Or Paying Off Debt?
    Credit & Loans

    Saving Money Or Paying Off Debt?

  4. Perkins Loan Vs. Stafford Loan
    Credit & Loans

    Perkins Loan Vs. Stafford Loan

comments powered by Disqus
Hot Definitions
  1. Letter Of Credit

    A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. ...
  2. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  3. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  4. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  5. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  6. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
Trading Center