Etax1098 is an IRS Authorized e-file provider for all variations of Form 1098. Currently we offer IRS E-filing services for Form 1098 and Form 1098-T.
Mortgage lenders must supply borrowers with Form 1098 every year. The amount of mortgage interest on this form is important, because in most cases it lowers the taxpayer's tax liability. If the borrower has more than one mortgage lender, he or she will receive more than one 1098. If the interest paid is less than $600, however, the borrower might not receive a 1098 from the lender (though the borrower can still report the interest paid).
Receipts of interest from corporations, partnerships, trust, estates, associations, or companies do not require 1098, according to the IRS.
It is important to note that people who are not engaged in the lending business generally do not have to file 1098s. For example, if you are a doctor specializing in animal health and you lend $10,000 to a friend, who makes interest payments to you, you do not have to file a 1098 on the borrower (you do have to report the interest income, however). The IRS also sets rules for non-U.S. citizens or non-U.S. residents who receive interest in the United States.Form 1098 :
Use Form 1098, Mortgage Interest Statement, to report mortgage interest of $600 or more received by the filer during the year in the course of trade or business from an individual, including a sole proprietor.Form 1098-T :
An eligible educational institution, such as a college or university in which the student is enrolled must file Form 1098-T to establish reimbursements or refunds of qualified tuition and related expenses and supply the student with a formal copy.Form 1098-C :
Use Form 1098-C to submit and provide record of a sold donated vehicle (motor vehicle, boat, or airplane) to the applicable charity. This form must be filed within 30 days of the sale or donation of the “donated vehicle”.Form 1098-E :
A person (including a financial institution, a governmental unit, and an educational institution) that receives interest payments of $600 or more during the year on one or more Qualified student loans must file Form 1098-E and furnish this statement to applicable student.
Let's say that John borrows $100,000 for a house from Bank Peter Corp. He makes the mortgage payments, and at the end of the year, Peter Corp sends him and including the IRS, a Form 1098, which shows that John paid a total of, say, $11,000 in mortgage interest. For John, this mortgage interest is tax-deductible, so he uses the $11,000 number on his tax return for the year. If John paid points on the mortgage is to lower the interest rate or prepaid any interest, those points and interest payments will appear on Form 1098 as well.
There are also other kinds of IRS 1098 forms like 1098-C forms, where-in for example, to provide information about the donation of boats, cars and other vehicles. The Form 1098-E shows the interest paid on student loans for the year, and Form1098-T shows the amount of tuition paid for the year.
This IRS form 1098 concentrates on borrowers to take care of their mortgage interest whether or not exceeding $600 or more during the year.
That’s why IRS forms 1098 Matters.
IRS Form 1098 reports how much mortgage interest a taxpayer paid during the tax year.