Understand the source document
The IRS describes Form 1098 as a mortgage interest statement filed by qualifying recipients of mortgage interest. The statement provides reporting information; the taxpayer's deduction depends on current law and the surrounding facts.
Use the current form and instructions for the tax year being prepared.
Match the loan and property
Capture lender, borrower, account, property address, outstanding principal, interest, points, taxes or insurance shown, acquisition date, and any refund or correction. Match refinanced, sold, or transferred loans to closing documents and prior-year records.
When multiple Forms 1098 relate to the same property, reconcile dates and balances before entry to avoid duplication.
Route judgment questions
Flag mixed-use property, home office, rental conversion, cash-out refinancing, points, seller financing, multiple homes, and missing closing statements for preparer analysis. Intake staff should not label the amount deductible.
Keep the form, related evidence, conclusion, and reviewer note connected in the workpaper.
Sources and limitations
- About Form 1098, Mortgage Interest Statement — Internal Revenue Service; reviewed August 15, 2026.
This article is educational and is not tax, legal, accounting, security, or investment advice. Product capabilities and tax requirements can change. Confirm current vendor scope and authoritative guidance for the relevant facts, tax year, and jurisdiction.
How this article was prepared
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