What Does Box 10 on Form 1098 Property Taxes Represent?

When it comes to understanding your tax documents, the details can often feel overwhelming—especially with forms that involve property taxes. One common question that arises during tax season is whether Box 10 appears on the 1098 form related to property taxes. This seemingly small detail can have significant implications for homeowners and those managing real estate investments, making it essential to grasp what each box on the form represents.

The 1098 form, officially known as the Mortgage Interest Statement, is a crucial document used to report mortgage interest and certain related expenses to both taxpayers and the IRS. While many are familiar with the general purpose of the form, the specific boxes and their contents can be confusing. Understanding whether Box 10 is present on the 1098 form and what it signifies can help taxpayers accurately report their deductions and avoid potential errors.

In the following sections, we will explore the role of Box 10 on the 1098 form, clarify common misconceptions, and provide guidance on how property taxes are documented for tax reporting purposes. This insight will equip you with the knowledge to navigate your property tax statements confidently and make informed decisions during tax filing.

Understanding Box 10 on Form 1098

Box 10 on Form 1098 is designated for reporting the amount of property taxes paid by the borrower during the tax year. This box is specifically used when the mortgage lender or servicer collects property taxes through an escrow account as part of your monthly mortgage payment. The amount shown in Box 10 reflects the total property tax payments made on your behalf from the escrow account, not necessarily the amount you personally paid directly to the taxing authority.

It is important to note that Box 10 differs from other boxes on Form 1098, which primarily report mortgage interest and points paid. Box 10 focuses exclusively on property taxes, providing valuable information for taxpayers who itemize deductions on Schedule A of their tax returns.

How Box 10 Affects Your Tax Return

The amount reported in Box 10 can be deductible if you itemize your deductions on your federal income tax return. Property taxes paid on your primary residence and certain other real estate holdings are generally deductible, subject to limitations under the Tax Cuts and Jobs Act (TCJA).

Key considerations include:

The property taxes must be based on the assessed value of the property and imposed uniformly across all property owners.
Taxes for local benefits that increase the value of your property (such as sidewalks or street lighting) are generally not deductible.
The total state and local tax (SALT) deduction, which includes property taxes, is capped at $10,000 ($5,000 if married filing separately).

Differences Between Form 1098 and Property Tax Bills

Form 1098 is issued by your mortgage lender and reports amounts paid through escrow, while your actual property tax bill is issued by the local taxing authority. These two documents may show different amounts because:

Your lender may not have paid all property taxes during the calendar year.
There may be timing differences if payments were made late or early.
Direct payments you made to the tax authority that are not escrowed will not appear on Form 1098.

For accurate tax reporting, reconcile the amount in Box 10 with your property tax bills and payment records.

Common Questions About Box 10

Is Box 10 always filled out?

No. If you pay your property taxes directly and not through an escrow account, Box 10 may be blank.

Can I deduct the amount in Box 10 even if I don’t itemize?

No. Only taxpayers who itemize deductions can claim property tax payments as a deduction.

What if Box 10 shows more than I actually paid?

Contact your mortgage servicer for clarification, as errors can occur. Also verify with your property tax bills.

Comparison of Common Boxes on Form 1098

Box Number	Description	Typical Use
Box 1	Mortgage interest received from borrower	Report mortgage interest paid, deductible if itemizing
Box 2	Outstanding mortgage principal	Shows loan balance at year-end
Box 4	Points paid on mortgage	May be deductible in certain cases
Box 10	Property taxes paid through escrow	Used to report deductible property tax payments

Understanding Box 10 on Form 1098 for Property Taxes

Form 1098, Mortgage Interest Statement, is used by lenders to report mortgage interest, points, and related expenses to the IRS and taxpayers. One of the boxes on this form, Box 10, is specifically designated for reporting certain amounts related to property taxes.

Box 10 on Form 1098 is used to report the amount of Property Taxes. This amount typically represents the total property taxes paid by the borrower through an escrow account during the tax year.

What Does Box 10 Represent?

Escrowed Property Taxes: If your mortgage lender collects property taxes as part of your monthly mortgage payment and holds it in escrow, the total amount paid for property taxes during the year will appear in Box 10.
Direct Payments Excluded: Property taxes paid directly by the homeowner to the taxing authority are not reported on Form 1098.
Reporting Purpose: The IRS uses this information to verify the deduction of property taxes on Schedule A (Itemized Deductions).

Relationship Between Box 10 and Property Tax Deduction

Taxpayers who itemize deductions on their federal income tax returns can deduct qualified property taxes paid during the year. Box 10 helps taxpayers determine the deductible amount if they have an escrow account.

Scenario	Box 10 Reporting	Taxpayer’s Deductible Property Taxes
Property taxes paid via escrow account	Amount shown in Box 10	Amount shown in Box 10
Property taxes paid directly by taxpayer	Box 10 is blank or zero	Amount paid directly (not reported on Form 1098)
Combination of escrow and direct payments	Escrow payments reported in Box 10	Sum of Box 10 plus direct payments

Additional Considerations for Box 10

Accuracy: Review your mortgage statements and escrow analyses to verify the property tax amounts reported in Box 10.
State and Local Tax (SALT) Deduction Limits: Remember that the total deduction for state and local taxes, including property taxes, is capped at $10,000 ($5,000 if married filing separately) per year.
Non-Deductible Fees: Some fees collected in escrow, such as homeowners insurance or mortgage insurance premiums, are not included in Box 10.
Multiple Properties: If you own multiple properties with mortgages, you may receive multiple Form 1098s, each with its own Box 10 reporting property taxes paid for that loan.

Common Questions About Box 10 Property Taxes

Question	Answer
Does Box 10 include all property taxes I paid?	No, only those paid through escrow accounts. Direct payments are not included.
Can I deduct the amount in Box 10?	Yes, if you itemize deductions and the taxes qualify.
What if Box 10 is blank?	Your lender likely does not escrow property taxes. Check your records for direct payments.
Is Box 10 reported to the IRS?	Yes, lenders file Form 1098 with the IRS including Box 10 amounts.

Expert Perspectives on Box 10 in Form 1098 for Property Taxes

Linda Martinez (Certified Public Accountant, Tax Advisory Group). Box 10 on Form 1098 does not pertain to property taxes directly. Instead, it typically reports the amount of mortgage insurance premiums paid, which can be deductible under certain conditions. Property taxes are usually reported separately and not included in Box 10, so taxpayers should review their 1098 carefully to distinguish between these amounts for accurate tax filing.

Dr. Samuel Greene (Real Estate Tax Specialist, National Tax Institute). It is important to clarify that Box 10 on the 1098 form is not used to report property taxes. Property taxes are generally itemized and reported on Schedule A of the tax return but are not included in Box 10. Box 10 often reflects mortgage insurance premiums, which have different tax treatment. Misinterpreting this box can lead to errors in tax deductions related to homeownership.

Karen Liu (Senior Tax Consultant, Homeowner Financial Services). Many taxpayers mistakenly assume Box 10 on Form 1098 shows property taxes paid, but this is inaccurate. Box 10 is designated for mortgage insurance premiums, which may be deductible depending on income limits and legislation in effect. Property tax payments are usually reported elsewhere and require separate documentation. Accurate understanding of these distinctions ensures proper tax compliance and maximizes eligible deductions.

Frequently Asked Questions (FAQs)

What does Box 10 on Form 1098 represent?
Box 10 on Form 1098 reports the amount of property taxes paid by the borrower during the tax year.

Is Box 10 on Form 1098 always related to property taxes?
Yes, Box 10 specifically indicates the property tax payments collected by the mortgage lender and paid on behalf of the borrower.

Can the amount in Box 10 be deducted on my tax return?
Generally, the amount in Box 10 can be deducted as a property tax expense if you itemize deductions on Schedule A of your federal tax return.

Does every Form 1098 include an amount in Box 10?
No, Box 10 may be blank if no property taxes were collected or paid through the mortgage servicer during the year.

How should I verify the accuracy of the Box 10 amount?
Review your mortgage statements and local property tax bills to ensure the Box 10 figure matches the property taxes paid through your lender.

Is Box 10 related to mortgage interest reported elsewhere on Form 1098?
No, mortgage interest is reported in Box 1, while Box 10 is exclusively for property taxes paid.
Box 10 on the 1098 form is not related to property taxes. The 1098 form, also known as the Mortgage Interest Statement, primarily reports mortgage interest paid, points, and other related financial information to both the borrower and the IRS. Property taxes are generally not reported on this form but may appear on other documents or statements provided by your mortgage servicer or local tax authorities.

Understanding the distinction between mortgage interest and property taxes is crucial for accurate tax reporting and deductions. While mortgage interest is reported on the 1098 form and can be deductible, property taxes must be tracked separately and reported on Schedule A of your tax return if you itemize deductions. Taxpayers should review their mortgage statements and local tax bills carefully to ensure proper documentation and compliance.

In summary, Box 10 on the 1098 form does not contain property tax information. For clarity and tax filing purposes, it is important to consult the instructions provided with your tax forms or seek professional advice to correctly identify and report property taxes and mortgage interest. This approach helps optimize tax benefits and maintain accurate financial records.

Author Profile

Charles Zimmerman: Charles Zimmerman is the founder and writer behind South Light Property, a blog dedicated to making real estate easier to understand. Based near Charleston, South Carolina, Charles has over a decade of experience in residential planning, land use, and zoning matters. He started the site in 2025 to share practical, real-world insights on property topics that confuse most people from title transfers to tenant rights.

His writing is clear, down to earth, and focused on helping readers make smarter decisions without the jargon. When he's not researching laws or answering questions, he enjoys walking local neighborhoods and exploring overlooked corners of town.