A 1098 tax form is used to report certain types of deductible interest or qualified payments that a taxpayer makes during the tax year. You can deduct this amount from your Gross Income to lower your Adjusted Gross Income or your final tax liability, meaning you will pay less in taxes. The most common use of the 1098 form is probably for homeowners.
The financial institution that you have borrowed from will issue your 1098 form for mortgage and student loan interest. Your university should provide 1098-T forms for you to take education tax credits if you qualify. In the case of donating a vehicle, the charity that you donated to should be able to provide you with the proper forms.
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