There are lots of different 1098s and we wanted to help you better understand them, so we’ve put together this guide of eFile360 resources and FAQs to help you grow your understanding.
1098s: The Basics
1098s are used when you are preparing your federal income taxes, and they describe the financial transactions you or your business made during a calendar year that could affect the filing of your tax return.
There are seven different types of 1098 forms: 1098, 1098-E, 1098-T, 1098-C, 1098-F, 1098-MA, and 1098-Q. The most commonly used include the 1098, 1098-T, and 1098-C.
For a complete list of these forms and a description of what each form is for, you can read our eFile360 blog article on that topic.
How Do I Fill Out Form 1098?
When you are filling out and filing your 1098s, you want to be sure you or the tax preparer you have chosen to assist you follows the IRS instructions, which you can find here.
Will I Get Two 1098 Forms if I Refinance?
Generally, you should expect to receive a single 1098 form per property per year. However, if you have refinanced any of your properties within the current tax year, you will receive two 1098s to reflect the changes instituted before and after the refinance.
Filing Form 1098 allows you to report and deduct mortgage insurance premiums from your taxes every year.
What Are Some Reasons I Would or Wouldn’t Receive a 1098-T?
The 1098-T is issued by colleges and other educational institutions and is used to report how much a student (or their parents) paid in qualified tuition and expenses during the tax year.
If you pay interest on student loans, you should get a 1098-T unless any of the following are true:
- A course you took did not offer academic credit
- You are a nonresident alien
- Your school waived your tuition or expenses, or they were fully covered by scholarships
- Or an employer or government agency covered your tuition and expenses entirely
If you didn’t receive a 1098-T and you think you should have, the first thing you should do is check the address on file at the educational institution – if the parents are paying that tuition, for example, but the student’s address (either on- or off-campus) is what’s on file with the school, it may have been sent to the wrong place.
Can I E-file my 1098s?
Yes. You can file your 1098 forms electronically using the Filing Information Returns Electronically (FIRE) system. These forms are also a part of the Combined Federal/State Filing (CF/SF) program, which allows your 1098s to be automatically forwarded to participating states. More on that here.
eFile360: Let Us Help with Your 1098s
You have too much to worry about this year to be bothered with trying to file your 1098s (and other tax forms) on paper. E-filing is a great way to save time and cut down on tax errors. With eFile360, you can quickly and easily upload your data. Our software will check for errors and create the necessary forms for you.
Do you have lots of 1098s to file? Sign up for a free eFile360 account.