It’s Tax Season: Here Are the Mortgage Documents You Need

It's Tax Season: Here Are the Mortgage Documents You Need

Somehow, it’s 2022, and it’s already time to start prepping those tax returns. 

Sure, we have another few months before they’re technically due, but we all know: The sooner you file, the faster that refund comes. (And who couldn’t use a little extra cash after the holidays?)

You’ll need the usual: W-2s and 1099s, statements for your retirement accounts and assets, and documentation of your education and childcare expenses, among other items. And if you’re a homeowner (especially a newly minted one)? You’ll need a handful of mortgage documents, too. 

Here’s a quick list of the mortgage documents you’ll need to file your tax returns:

1098

The 1098 is your mortgage interest statement. It shows how much interest you paid on your mortgage loan across the year. If you choose to write this interest off from your taxable income (as long as you itemize your returns), you’ll use this form to prove how much you paid.

In some cases, you may have several 1098s. This might be the case if your loan was transferred to a new servicer during the year (you’d then have one from each servicer, stating how much you paid them). Or it could happen if you have multiple loans (home equity loan or HELOC, for example) or multiple properties — like a vacation home or second house.

Your servicer should send you these documents by the end of January, but if, for some reason, you don’t receive these, you can usually go to your online mortgage dashboard and download the document there.

Closing statement

If you bought a home in the previous year, your closing statement is important too. Like with mortgage interest, you can also deduct any points or interest you pay at closing. This can reduce the taxes you owe on your annual returns.

Property tax statement

Property taxes are also deductible, and while they’re often noted on your 1098 forms and closing statements, there’s a chance they might not be — particularly if you chose not to use an escrow account

Home improvement receipts

As a general rule, home improvements aren’t deductible, but there are some cases when they might be. For example, if your updates were medically related (say, a wheelchair ramp), they could be a medical write-off. If they improve your home’s energy efficiency (like a solar panel system), they might qualify you for a write-off or valuable tax credit. 

What mortgage documents do you need?

Homeownership can qualify you for a whole slew of tax benefits, so make sure to speak to a tax professional to ensure you’re taking advantage of all the ones you’re eligible for.

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Aly Yale

Aly J. Yale is a freelance writer focusing on real estate, mortgage, and the housing market. Her work has been featured in Forbes, Bankrate, The Motley Fool, Business Insider, The Balance, and more. Prior to freelancing, she served as an editor and reporter for The Dallas Morning News. She graduated from Texas Christian University's Bob Schieffer College of Communication with a major in radio-TV-film and news-editorial journalism. Connect with her at AlyJYale.com or on Twitter at @AlyJwriter.