Mortgage Expert Warns Homeowners Not To Throw Away This Form Sent With Your Recent Statement

A mortgage expert has warned homeowners not to throw away their 1098 tax forms before they file.

In her recent video, California-based realtor Liz Reese (@loanladyliz) explained that 1098 forms can be an important deduction for people who qualify.

"When you open up your mortgage statement this month, do not throw this form away," Reese said in her TikTok, which has received more than 500,000 views.

Reese explained that for homeowners, the 1098 form shows how much interest you paid on your mortgage last year, which can be important.

"Whether you do your taxes or you take it to an accountant, they're going to want to see this so that they can write off the interest possibly," Reese said.

In an email to Newsweek, Reese said some clients reached out to her saying that hadn't received their form yet.

"I had a few tell me only idiots would throw them away, but I responded with a reminder that first-time home buyers don't know what they don't know," Reese said.

"That's why I'm reminding them."

1098 Forms

A 1098 form is a tax document that reports certain types of payments you made during the year, which might help you claim deductions or credits on your tax return.

The most common type is Form 1098 (Mortgage Interest Statement), which shows how much mortgage interest you paid to a lender.

Other variations include Form 1098-T, which reports tuition payments for education tax credits, and Form 1098-E, which shows interest paid on student loans.

If you receive a 1098 form, it means the Internal Revenue Service (IRS) has been notified about the payments, and you may be eligible for a tax break.

"Everyone's tax situation is different, so I will always defer to a tax professional for individual help," Reese told Newsweek.

"There are a variety of mortgage interest-related questions people need to consider or ask about. Is there a limit on how much can be written off?

"Can the interest on a HELOC [Home Equity Line of Credit] be written off? What if it's a rental property?

"All great questions to ask your accountant!"

Other Tips

Reese offered another tip for homeowners around tax time: Try to stay as organized as possible.

"Make a folder of all the things you'll need from your taxes so you can stay organized as mail comes in," she told Newsweek.

"You'll get income documents (W2, 1099 for example), the 1098 for the mortgage interest, your property tax bills.

"If you have a home office, keep track of your utility bills, HOA [Home Owner Association], insurance, cleaning services, internet bills because all of that has the potential to be able to be applied to your taxes for savings."

She added that she expects home rates to stay around 6% this year.

"This is a big opportunity to get a house before rates come down and prices go up," she said.

"If you own the house, you get to refinance and have the benefit of the less expensive house and now the lower rate."