IRS Form 1098 is used to report mortgage interest payments ($600 or more) to the IRS. It’s issued by mortgage lenders to homeowners, as well as businesses that have received interest from individuals or sole proprietors. Form 1098 can also report student loan interest payments, tuition expenses, and vehicle donations.
What is Form 1098-C?
IRS Form 1098 is a tax form used by businesses and lenders to report mortgage interest totaling $600 or more that they have received from an individual each year. It also reports tuition, student loan interest, and charitable contribution payments. Homeowners who receive Form 1098 should enter the provided data into their tax forms to take advantage of tax deductions such as the mortgage interest deduction. Businesses must e-file Form 1098 using software that meets the IRS’ specifications in order to submit it to the IRS. Form 1098 is a relatively straightforward form that taxpayers should have no problem filing properly.
IRS Form 1098-C – Who Needs to Fill It Out?
IRS Form 1098 is a tax form used by lenders and businesses to report mortgage interest payments and other payments of $600 or more to the IRS and to taxpayers. Homeowners, lenders, businesses, students, donors, and insurance companies are among those required to fill out 1098 forms to report different types of payments and donations. Form 1098 is members can easily be found in the mail or online. If it is not received by tax time, taxpayers should call their lender or check their lender’s online portal for the form. This form is relatively straightforward and should not cause complications for taxpayers come tax time.
Step-by-Step: Form 1098-C Instructions For Filling Out the Document
Filing Form 1098 is relatively straightforward. To obtain it, you should first contact your mortgage lender, or check online, as it is typically sent in the mail with any other tax forms. The form is used by businesses or lenders to report to the IRS mortgage interest payments, mortgage premiums, points, and more. It is also used for student loan interest payments, tuition expenses, qualified vehicle donation contributions, and more. On the form, businesses and lenders must report any mortgage interest payments totaling $600 or more, while individuals and sole proprietors should enter any interest paid as the consumer. E-filing is available for businesses, and submitting the form should not cause any complications come tax season.
Below, we present a table that will help you understand how to fill out Form 1098-C.
| Information Required for Form 1098 | Details |
|---|---|
| Form Source | Contact mortgage lender or check online |
| Contents of Form | Mortgage interest payments, mortgage premiums, points, and more |
| Other Uses | Student loan interest payments, tuition expenses, vehicle donation contributions, and more |
| Reporting Threshold | $600 or more for businesses and lenders |
| Individuals and Sole Proprietors | Report mortgage interest as a consumer |
| E-Filing | Available for businesses |
| Tax Season Complications | Should not cause any complications during tax season |
Do You Need to File Form 1098-C Each Year?
Yes, businesses and lenders must use the 1098 Form each year if they receive $600 or more in mortgage interest from individuals. Homeowners typically receive Form 1098 from their lenders to report mortgage interest payments, mortgage premiums, points, and other fees received. Form 1098 should be submitted with your annual tax return, and it is relatively straightforward for both businesses and homeowners. With its simplicity, there should be no issues with filing Form 1098 as long as the information reported to the IRS is correct.
Download the official IRS Form 1098-C PDF
On the official IRS website, you will find a link to download IRS Form 1098. However, to make it easier for you, we are providing the link in our article, which comes directly from the official irs.gov website! Click to download: Form 1098-C
Sources:
https://www.irs.gov/forms-pubs/about-form-1098-c
https://www.irs.gov/instructions/i1098c
