What is IRS Form 1098, Mortgage Interest Statement?

IRS Form 1098, Mortgage Interest Statement, is a tax document used to report mortgage interest of $600 or more received during the year from one individual during the course of business with the individual. This form details lender and borrower information, along with interest amounts and the address of the property with the mortgage.

What is Form 1098?

Form 1098 is used to report mortgage interest amounts of $600 or more received from an individual during the year during the course of business with an individual. A separate Form 1098 should be filed for each mortgage, and the $600 threshold applies separately for each mortgage.

Form 1098 is also used to report overpayment of interest on a mortgage that was refunded/credited. It is also used to report mortgage interest premiums (MIP) of $600 or more that were received during the year in the course of business from an individual (only if section 163(h)(3)(E) applies).

Exceptions
You need not file Form 1098 for interest received from a corporation, partnership, trust, estate, association, or company (other than a sole proprietor) even if an individual is a co-borrower and all the trustees, beneficiaries, partners, members, or shareholders of the payer of record are individuals.

IRS Form 1098 Instructions, Rev. Dec 2021

What information is on Form 1098?

Form 1098, Mortgage Interest Statement, has boxes for the following information:

• Recipient/Lender name, address, contact information, and TIN
• Payer/Borrower name address, and TIN
• Amount of mortgage interest received from payer(s)/borrower(s)
• Amount of outstanding mortgage principal
• Mortgage origination date
• Amount of refund of overpaid interest
• Amount of mortgage insurance premiums
• Amount of points paid on purchase of principal residence
• Checkbox to indicate if the address of the property securing mortgage is the same as the Payer’s/Borrower’s address
• Address or description of property securing mortgage
• Number of properties securing the mortgage
• Other
• Account Number
• Mortgage acquisition date

Deadlines & Penalties

Traditionally, the deadlines for Form 1098, Mortgage Interest Statement are as follows:

• January 31 — Deadline to furnish recipient copies
• February 28 — Deadline for paper filing
• March 31 — Deadline for electronic filing

Failing to file Form 1098 by the due date may result in penalties. These are as follows: 

• $60 per form if filed within 30 days of the deadline
• $130 per form if filed after the due date, but before August 1
• $330 per form if filed after August 1 or you do not file. 

Intentional disregard of filing or furnishing requirements may lead to additional penalties: 

• Intentional disregard of filing requirements –  up to $660 per form with no maximum penalty.
• Intentional disregard of recipient statement furnishing requirements – up to $660 per form with no maximum penalty.

Since January 1, 2024, filers with a total of more than 10 forms are required to e-file. Failing to file electronically could lead to penalties of up to $330 per return. However, this only applies to the number of forms over 10. 

Conclusion

Understanding IRS Form 1098, Mortgage Interest Statement, is important for both lenders and borrowers. Keeping aware of filing responsibilities can help both parties avoid fees and penalties.

Be sure to stay on top of all of the deadlines throughout the year! Check them out here:

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