Editable 1098 Tax Form
1098 Tax Form are forms that detail the amount of interest and related expenses paid on a mortgage during the tax year. It is used to report a mortgage's interest of $600 or more that you have received during the year in the course of your trade or business from an individual. The interest payments made on a mortgage can be claimed as tax deduction on this form, which helps to reduce the income that can be taxed from a taxpayer.
What is Form 1098?
Form 1098, Mortgage Interest Statement, is a tax form that the Internal Revenue Service (IRS) issues. It provides documentation of the mortgage interest and points paid by a homeowner during the tax year. The information from Form 1098 is used to calculate the home mortgage interest deduction on Schedule A of the taxpayer's individual income tax return.
Taxpayers who paid interest and points on a home mortgage during the tax year should receive a Form 1098 from their lender. The form is used to report the following information to the IRS:
If the taxpayer paid interest and points on more than one mortgage, they will receive a separate Form 1098 for each mortgage. The form must be received by the taxpayer by January 31st of the year following the tax year in which the interest was paid.
If you did not receive a Form 1098 from your lender, you can still claim the home mortgage interest deduction by providing documentation of the interest and points paid. This documentation can include a mortgage statement, settlement statement, or Form 1099-INT (Interest Income).
Points are prepaid interest charges that are paid at closing in order to lower the interest rate on the loan. One point equals 1% of the loan amount. For example, if you took out a $100,000 mortgage and paid two points at closing, you would have paid $2,000 in points.
The home mortgage interest deduction is claimed on Schedule A of Form 1040 (Individual Income Tax Return). The deduction is subject to certain limitations based on the taxpayer's income and filing status. Interest paid on home equity loans and lines of credit is also deductible, but there are different rules that apply.
A form 1098 has three copies:
Make sure to keep a personal copy of Form 1098 with your tax records.
How to fill out Form 1098?
Follow the instructions below to fill out Form 1098 correctly.
Recipient’s or Lender’s name, street address, city or town, state or province, country, ZIP or foreign postal code, and telephone number
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.
For calendar year
Enter the year of filing.
Item 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.
Item 2. Outstanding Mortgage Principal
Enter the total amount of outstanding mortgage principal as of the 1st of January of the current year.
Item 3. Mortgage Origination Date
Enter the date of the mortgage origination.
Item 4. Refund of Overpaid Interest
Enter the total amount of refund or credit of the prior year’s overpaid interest.
Item 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.
Item 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.
Item 7. Address Specification
Mark the box if the address of the 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.
Item 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.
Item 9. Number of Properties Securing the Mortgage
Enter the total number of properties securing the mortgage if there is more than one property.
Item 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.
Item 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.
Who needs to use Form 1098?
Form 1098 is used by taxpayers who paid interest and points on a home mortgage during the tax year. The form is also used by mortgage lenders to report this information to the IRS.
To determine if you need to use Form 1098, review the instructions for Schedule A of Form 1040 (Individual Income Tax Return).
In general, you will know if you need to use Form 1098 when you receive the form from your lender. This is typically issued by January 31st of the year following the tax year in which the interest was paid.
How do I get Form 1098?
You should receive Form 1098 from your mortgage lender by January 31st of the year following the tax year in which you paid the interest and points. If you did not receive a Form 1098, you can still claim the deduction by providing documentation of the interest and points paid. This documentation can include a mortgage statement, settlement statement, or Form 1099-INT (Interest Income).
What if I didn't receive Form 1098?
If you didn't receive Form 1098 from your mortgage lender, you can still claim the home mortgage interest deduction by providing documentation of the interest and points paid. This documentation can include a mortgage statement, settlement statement, or Form 1099-INT (Interest Income).
What are the penalties for not filing Form 1098?
If you are required to file Form 1098 and do not do so, you may be subject to a penalty of $50 per form that was not filed. The maximum penalty is $1,500,000 per year.
How do I file Form 1098?
Form 1098 must be filed with the IRS by February 28th of the year following the tax year in which the interest was paid. The form can be filed electronically or by paper. Paper forms must be accompanied by Form 8453 (Mortgage Interest Statement).