What document do homeowners receive to report mortgage interest?

Homeowners receive Form 1098 to report mortgage interest. This form is provided by the lender and details the amount of interest paid on the mortgage loan during a given tax year. It serves as a key document for taxpayers who wish to deduct mortgage interest on their tax returns.

The information on Form 1098 makes it easier for taxpayers to fill out their tax forms accurately because it specifies how much interest they have paid and includes fields for any points paid on the mortgage, which may also be deductible. This makes the process of reporting mortgage interest straightforward and helps ensure that homeowners can take advantage of the necessary deductions when filing their taxes.

The other forms listed serve different purposes. For instance, Form 1040 is the standard individual income tax return form; Form W-2 reports wages and salary income for employees; and Form 1099 encompasses various types of income other than wages, salaries, and tips. Each form plays a specific role in tax reporting, but for mortgage interest, Form 1098 is the appropriate document.