Fillable Form 1098

What is Form 1098?

Form 1098, Mortgage Interest Statement, is a legal tax form from the Internal Revenue Service (IRS) that is used by taxpayers to report their annual mortgage in the course of their trade or business which includes the total amount of interest and other related expenses that amounts to $600 or more.

If you engaged in trade or business and have received $600 of mortgage interest from an individual during the calendar year, you are required to file Form 1098. On the other hand, you will not be required to file Form 1098 if you received less than $600 in interest on a certain mortgage. This applies even if you have been paid over $600 in total on multiple mortgages by a payer.

As a taxpayer, you are required to report reimbursements of overpaid interest which amounts to $600 or more to a payer or borrower of record on this form. If you received less than $600, you are not required to report reimbursements of overpaid interest. Furthermore, if you did not receive at least $600 worth of mortgage interest within the reimbursement year from the individual to whom you made the reimbursement, then you are not required to fill out Form 1098.

In form 1098, you will be required to report certain points paid for the purchase of the payer or borrower of record’s principal residence. You will have to report these points if the total amount is $600 or more. This will include other interests on the mortgage. Regardless of the accounting method used to report the points, you must report the total points on this form for the calendar year.

The information entered in boxes 1 through 9 and 11 is important details about tax. This information is being furnished to the Internal Revenue Service (IRS). If you happen to be required to file a return, a negligence penalty or another type of sanction may be imposed on you if the Internal Revenue Service (IRS) finds out that an underpayment of tax has occurred because you have overstated a deduction for this certain mortgage interest. This may also apply in cases wherein you did not report the refund of interest in Box 4 or because you have decided to claim a nondeductible item.

How to fill out Form 1098?

Form 1098 has several copies. The following instructions below are applicable to all the copies:

• Copy A for Internal Revenue Service Center
• Copy B for Payer/Borrower
• Copy C for Recipient/Lender

To fill out Form 1098, Mortgage Interest Statement, you must provide the following information:

Recipient’s or Lender’s Information

Name

Enter the full legal name of the recipient or lender.

Street Address

Enter the street address of the recipient or lender including his or her apartment number.

City or Town

Enter the city or town of the recipient or lender.

State or Province

Enter the state or province of the recipient or lender.

Country

Enter the country of the recipient or lender.

ZIP Code or Foreign Postal Code

Enter the ZIP code or foreign postal code of the recipient or lender.

Telephone Number

Enter the telephone number of the recipient or lender.

Recipient’s or Lender’s Taxpayer Identification Number

Enter the taxpayer identification number (TIN) of the recipient or lender.

Payer’s or Borrower’s Taxpayer Identification Number

Enter the taxpayer identification number (TIN) of the payer or borrower.

Payer’s or Borrower’s Information

Name

Enter the full legal name of the payer or borrower.

Street Address

Enter the street address of the payer or borrower including his or her apartment number.

City or Town

Enter the city or town of the payer or borrower.

State or Province

Enter the state or province of the payer or borrower.

Country

Enter the country of the payer or borrower.

ZIP Code or Foreign Postal Code

Enter the ZIP code or foreign postal code of the payer or borrower.

Box 1. Mortgage Interest Received From Payers or Borrowers

Enter the total amount of interest received on the mortgage from the payers or borrowers during the calendar year. This includes mortgage interest, home equity loans, or lines of credit or credit card loans that are secured by real property.

Box 2. Outstanding Mortgage Principal

Enter the total amount of outstanding mortgage principal as of the 1st of January of the current year.

Box 3. Mortgage Origination Date

Enter the date of the mortgage origination.

Box 4. Refund of Overpaid Interest

Enter the total amount of refund or credit of the prior year’s overpaid interest.

Box 5. Mortgage Insurance Premiums

Enter the total amount of premiums paid for the tax year being reported. This amount may be $600 or more and will include prepaid premiums.

Box 6. Points Paid on Purchase or Principal Residence

Enter the total amount of points paid on the purchase of the payer or borrower of record’s principal residence.

Box 7. Address Specification

Mark the box if the address of property securing the mortgage is the same as the payer’s or borrower’s address; otherwise, leave it blank and enter the address or description in Box 8.

Box 8. Address or Description of Property Securing Mortgage

Enter the street address of the property securing the mortgage including the street address. Fill out this box only if the address of the property securing the mortgage is not the same as the payer’s or borrower’s mailing address.

Box 9. Number of Properties Securing the Mortgage

Enter the total number of properties securing the mortgage if there is more than one property.

Box 10. Other

Enter other items you want to report to the payer or borrower. This may include real estate taxes, insurance paid from escrow, or the name of the person you collected the interest for.

Box 11. Mortgage Acquisition Date

Enter the date of mortgage acquisition.

Account Number

Enter the account number assigned to the account of the payer or borrower. An account number is required if the recipient or lender has multiple accounts for a payer or borrower for whom he or she is filing more than one Form 1098.