Mortgage lenders should provide you with a 1098 interest statement by the end of January each year. If you don’t receive it or lose your copy and plan on claiming your mortgage interest expense on your tax returns, you’ll need to take action to get the form. If you estimate your interest expense, you could end up incorrectly reporting your deduction, which means you’ll have to amend your tax return to correct the issue. Your interest deduction often adds up to thousands of dollars, so it makes sense to report it correctly the first time.
Contact your mortgage lender. If your mortgage is serviced by a financial company, contact the company and request a 1098 form. Ask the company to send or fax an actual form – don’t take the information over the phone. The company’s agent could provide you with inaccurate information. If you bought the house directly from the previous owner, contact the owner for a 1098.
Log in to your online account. Some lenders provide 1098 forms online, which allows you to view or print an electronic copy of your 1098. Sign in to your account and look for “Tax Documents” or “1098 Form.”
Add up your interest payments yourself. Many lenders provide a breakdown of your payments on your monthly statements. The breakdown shows the amount allocated to principal, interest and escrow fees. Calculate the interest allocations from each month in the tax year and report the result on IRS Schedule A.
Request wage and income information from the IRS. If you’re unable to get a 1098 form from your lender, or can’t find all your statements, you can request the information from the IRS for free. The IRS keeps 1098 information received for your Social Security number, and can send you a transcript that contains all the information you need to report the deduction. Download Form 4506-T from the IRS website to request your 1098. When you complete the form, check the box on line 8 and write the tax year for which you need the form on line 9. A mailing address and fax number for you to send the form is included in the 4506-T instructions.