As the tax season approaches in the United States, mortgage experts are reminding homeowners, especially those who have recently purchased a new home, not to overlook the form that comes with their mortgage payment bills!
Real estate broker Liz Reese in California recently shared a video on a short video platform, emphasizing the importance for homeowners to pay attention to the 1098 form that is sent to them. The video has garnered significant attention.
Reese explained that the 1098 form documents the mortgage interest payments made to the lending institution over the past year. For homeowners, this is a crucial tax deduction basis that can bring unexpected tax benefits to eligible taxpayers. The 1098 form can be considered as your “secret weapon” when filing taxes.
Many people believe that only “inexperienced new homeowners” would discard the 1098 form. However, mortgage experts point out that in reality, many first-time homebuyers are unaware of these details, hence the need for reminders: “Whether you are filing taxes yourself or using a professional accountant, they will need this 1098 form to assist in deducting interest expenses when filing taxes.”
According to official information from the Internal Revenue Service (IRS), the 1098 form is a “mortgage interest statement” that records the total interest paid to the lender; in addition, there is the 1098-T form used to report tuition payments for education credits, and the 1098-E form for recording student loan interest payments. If you receive such forms, the IRS will also have the relevant records, indicating that you may be eligible for tax deductions.
Furthermore, IRS regulations state that in 2025, mortgage interest deductions usually apply to homes with loan balances not exceeding $750,000 (or $375,000 for married individuals filing separately). However, rules could vary for investment properties or special loans. Therefore, consulting with an accountant about specific circumstances is crucial.
Aside from the reminder to keep the 1098 form, Reese also shared some tax efficiency tips through Newsweek. She suggests homeowners prepare a designated folder to store all tax-related materials such as W-2 forms, 1099 for freelance income, property tax bills, and the 1098 form.
Additionally, don’t forget that if you are working from home, certain daily expenses like utilities, HOA fees, insurance, internet bills, etc., could be used for tax deductions.
In today’s busy and information-overloaded environment, properly managing financial documents can not only prevent errors but also potentially lead to tax surprises. Whether you are a novice homeowner or an experienced taxpayer, it is advisable to check your mortgage statements now to see if you have received the 1098 form. Perhaps this is the first step towards preparing for tax season and optimizing your finances.