What is a 1098 statement used for?

Use Form 1098, Mortgage Interest Statement, to report mortgage interest (including points, defined later) of $600 or more you received during the year in the course of your trade or business from an individual, including a sole proprietor. Report only interest on a mortgage, defined later.

Do I have to use my 1098?

No, you don’t have to report your 1098-T, not unless you want to claim an education credit. However if your grant/scholarship amount (box 5) is more than your tuition (box 1/box 2) you may want to report it because excess scholarship money may be treated as taxable income on your return.

Why did I get a 1098 tax form?

Why did I get a 1098? Generally, getting any kind of 1098 form is related to a financial transaction you engaged in during the tax year. For example, if you pay tuition to an eligible education institution, your school may send you a Form 1098-T. If you paid at least $600 in interest on a mortgage, your lender will likely send you a Form 1098.

Do you have to include Box 2 on 1098-T?

A: No, Box 2 of Form 1098-T does not include expenses for books. You should consult with your tax advisor to determine if payments for books, equipment or fees should be considered when preparing your income tax returns and determining eligibility for education tax credits or deductions.

How to report mortgage interest on Form 1098?

About Form 1098, Mortgage Interest Statement. Use Form 1098 to report mortgage interest of $600 or more received by you during the year in the course of your trade or business from an individual, including a sole proprietor. Form 1098.

Where are scholarships reported on a 1098 form?

For example, if you earned any scholarships during the tax year while you were attending college, this may be reported in Box 5 of the Form 1098-T. Form 1098, for mortgage interest, will also show when your mortgage was originated in Box 3.