File 1098 Online
What is Form 1098?
The primary purpose of this form is to report the mortgage interest paid by a person. This interest is usually tax deductible, which allows substantial tax savings during tax season. For instance:
- You can deduct interest on the first $750,000 of your mortgage debt if you’re filing as single, head of household, or married filing jointly.
- If you’re married and filing separately, the limit is $375,000 each.
Key Information on Form 1098:
Form 1098 is issued by the lender to report the interest paid on the mortgage accurately. The form contains multiple fields. Here are the details.
- Borrower’s Name and Social Security Number: Identifies you.
- Lender’s Name and Address: Identifies the financial institution.
- Mortgage Interest Paid: This is the most important number! It shows the total interest you paid on your mortgage during the year.
- Other Items: The form might include other details like points paid, property taxes paid through escrow, and the loan origination date. These may also be deductible, but it’s essential to consult the IRS guidelines or a tax professional.
Common Scenarios Where 1098 Can Be Tax Deductible:
1098 forms have only two purposes: to offer tax deductions and for record-keeping. Here are scenarios where you can use the 1098 form:
- Primary Residence: Interest paid on a mortgage for your primary residence is typically deductible.
- Second Home: Interest on a mortgage for a second home may also be deductible, but there are limitations.
- Refinancing: Interest paid on a refinanced mortgage is also deductible.
Furthermore, interest on home equity loans may be deductible if the funds were used for home improvements. However, the rules are complex and can change, so it’s vital to check the current IRS guidelines.
Process of 1098 E-Filing:
First of all, you need an account on E-File Workforce Payroll. Once you are done with it, you can follow the below mentioned steps:
- Login to your E-File Workforce Payroll account and open the dashboard.
- In the left menu, you will find the “New Filing” option.
- Select the form 1098 and filing year.
- Fill up all necessary details and submit.
Gather all necessary details before you start the filing process. It will save you time and make the filing more smother.
Key Dates to Remember for 1098 Filing:
IRS accepts 1098 filings till March. Here are the deadlines specified by the Internal Revenue Service (IRS):
- A recipient copy must be issued and sent before January 31, 2025.
- If you are paper filing, the deadline for 1098 will be February 28, 2025.
- The last date for e-filing the 1098 form is March 31, 2025.
Key Note: Always refer to the IRS’s official website for the most up-to-date information. The deadline can change due to holidays and official off days.
Have Questions?
Simpler than you think!
FAQ Zone:
Contact your lender. Ask them about your 1098 form. They might have forgotten to send you one. The 1098 is issued by lenders, who are responsible for providing you with this form.
Reach out to your lender and inform them about the error. They will issue a new form with corrected information. Avoid filing your taxes with wrong information. It will cause trouble for you.
Yes, you will receive a 1098 for the time of the year when the mortgage was being paid. However, it will be the last 1098 form for that property.
Yes, you will receive 1098 separately for each mortgage. For instance, most people have a primary residence with a second home. So they pay the mortgage on both properties with interest, hence getting multiple 1098 forms.
You will get two 1098s this year. One is from the previous lender for the time of the year they own the mortgage, and the other is from the new lender for their part of the year. However, in the lump sum, you will pay the same amount in interest.
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