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Fillable Form 1098 (2021)

Form 1098 is used to report annual mortgage interest of $600 or more of an individual from a trade or business.

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What is Form 1098?

Form 1098, Mortgage Interest Statement, is a form by the Internal Revenue Service (IRS) used by recipients or lenders and payers or borrowers to report a minimum of $600 mortgage interest received or paid in a year.

Form 1098 is also used to report at least $600 Mortgage Insurance Premiums (MIP) during the calendar year if section 163(h)(3)(E), Mortgage Insurance Premiums Treated As Interest, applies.

How to fill out Form 1098?

Paper forms are scanned during processing. Copy A of Form 1098 on any website is not scannable.

Do not fill out, print, nor file Copy A of Form 1098. Otherwise, a penalty may be imposed for filing unscannable Internal Revenue Service (IRS) information return forms.

Copy B

Copy B is for the payer or borrower’s use only.

Account number

Enter your account or other unique numbers the lender has assigned to you.

PAYER'S/BORROWER'S TIN

Enter your Tax Identification Number.

PAYER'S/BORROWER'S name

Enter your name.

Street Address

Enter your street address.

City or town, state or province, country, and ZIP or foreign postal code

Enter your city, town, state, province, country, and ZIP code or foreign postal code.

1. Mortgage interest received from payer(s)/borrower(s)

Enter the amount of mortgage interest you paid to lenders or recipients during the calendar year. Do not include the points, government subsidy payments, or seller payments on a buydown mortgage.

2. Outstanding mortgage principal

Enter the amount of outstanding principal on the mortgage as of January 1.

3. Mortgage origination date

Enter the date of the mortgage origination.

4. Refund of overpaid interest

Enter the total refund of the overpaid interest you made in a prior year or years.

5. Mortgage insurance premiums

Enter the mortgage insurance premiums you paid or borrowed. The amount entered may be qualified as deductible mortgage interest. See the current tax year Schedule A (Form 1040), Itemized Deductions, instructions.

6. Points paid on purchase of principal residence

Enter all reportable points paid for the purchase of your principal residence.

7. If address of property securing mortgage is the same as PAYER’S/BORROWER’S address, the box is checked, or the address or description is entered in box 8

Mark the box if the address of the property securing the mortgage is the same as your address. If not, leave the box blank and complete box 8.

8. Address or description of property securing mortgage

Enter the address or description of the property securing the mortgage if it is different from your address.

9. Number of properties securing the mortgage

Enter the number of properties securing the mortgage. You may leave it blank if only one property secures the loan.

10. Other

The interest recipient may use this space for other information, such as real estate taxes or insurance paid from escrow.

11. Mortgage acquisition date

Enter the mortgage acquisition date.

Copy C

Copy C is for the recipient or lender’s use only.

Account number

Enter the account number of your payer or borrower.

File one Form 1098 for each payer or borrower's account.

RECIPIENT'S/LENDER'S Name, Address, and Telephone Number

Enter your name, address, and telephone number.

RECIPIENT'S/LENDER'S TIN

Enter your Tax Identification Number.

PAYER'S/BORROWER'S TIN

Enter the payer or borrower's Tax Identification Number.

PAYER'S/BORROWER'S name

Enter the payer or borrower's name.

Street Address

Enter the payer or borrower's street address.

City or town, state or province, country, and ZIP or foreign postal code

Enter the payer or borrower's city, town, state, province, country, and ZIP code or foreign postal code.

1. Mortgage interest received from payer(s)/borrower(s)

Enter the amount of mortgage interest received from payers or borrowers during the calendar year. Do not include the points, government subsidy payments, or seller payments on a buydown mortgage.

2. Outstanding mortgage principal

Enter the amount of outstanding principal on the mortgage as of January 1. Enter the mortgage principal as of the date of origination if you originated the mortgage in the current tax year. Enter the outstanding mortgage principal as of the date of acquisition if you acquired the mortgage in the current tax year.

3. Mortgage origination date

Enter the date of the mortgage origination. If you acquired this mortgage, do not enter the date of acquisition. Enter the date the mortgage originated with the original lender.

4. Refund of overpaid interest

Enter the total refund or credit of a prior year or years overpayment interest.

5. Mortgage insurance premiums

Enter the mortgage insurance premiums received in the current tax year. The amount entered may be qualified as deductible mortgage interest. See the instructions of the current tax year Schedule A (Form 1040), Itemized Deductions.

6. Points paid on purchase of principal residence

Enter all reportable points paid on the purchase of the payer of record's principal residence.

7. If address of property securing mortgage is the same as PAYER’S/BORROWER’S address, the box is checked, or the address or description is entered in box 8

Mark the box if the address of the property securing the mortgage is the same as the payer or borrower's address. If not, leave the box blank and complete box 8.

8. Address or description of property securing mortgage

Enter the address or description of the property securing the mortgage if it is different from the payer or borrower’s mailing address.

Enter the property’s jurisdiction and Assessor Parcel Number (APN) if the property securing the mortgage has no address.

9. Number of properties securing the mortgage

Enter the number of properties securing the mortgage. You may leave it blank if only one property secures the loan.

10. Other

Enter any other item you wish to report to the payer or borrower, such as real estate taxes, insurance paid from escrow, or, if you are a collection agent, the name of the person for whom you collected the interest.

11. Mortgage acquisition date

Enter the mortgage acquisition date if you acquired it in the current tax year. Otherwise, leave this box blank.

What is Section 163(h)(3)(E)?

Section 163(h)(3)(E) is an Internal Revenue Code comprising the qualifications of mortgage insurance premiums as an interest.

Below is the content of section 163(h)(3)(E).

I.R.C. § 163(h)(3)(E)(i)

In General — Premiums paid or accrued for qualified mortgage insurance by a taxpayer during the taxable year in connection with acquisition indebtedness with respect to a qualified residence of the taxpayer shall be treated for purposes of this section as interest which is qualified residence interest.

I.R.C. § 163(h)(3)(E)(ii)

Phaseout — The amount otherwise treated as interest under clause (i) shall be reduced (but not below zero) by 10 percent of such amount for each $1,000 ($500 in the case of a married individual filing a separate return) (or fraction thereof) that the taxpayer's adjusted gross income for the taxable year exceeds $100,000 ($50,000 in the case of a married individual filing a separate return).

I.R.C. § 163(h)(3)(E)(iii)

Limitation — Clause (i) shall not apply with respect to any mortgage insurance contracts issued before January 1, 2007.

I.R.C. § 163(h)(3)(E)(iv)

Termination — Clause (i) shall not apply to amounts:

I.R.C. § 163(h)(3)(E)(iv)(I) — paid or accrued after December 31, 2021; or

I.R.C. § 163(h)(3)(E)(iv)(II) — properly allocable to any period after such date.

How to file Form 1098?

Recipients or lenders must file one Form 1098 for each qualified mortgage. Payers or borrowers may file Form 1098 to claim a deduction for the interest payments.

Submit the accomplished Form 1098 and other necessary documents to the Internal Revenue Service (IRS).

Keywords: form 1098 2021 irs form 1098 irs 1098 form 2021 form 1098 irs 2021

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