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IRS Form 1098: Mortgage Interest Statement

Form 1098

IRS tax form 1098 is also known as the Mortgage Interest Statement. This statement must be furnished to anyone who paid more than $600 in mortgage interest to a lender. The lender can be a person, financial institution, coal up housing Corporation or a governmental unit.

IRS Form 1098 Must be Original

If you are issuing Mortgage Interest Statement Form 1098, you must use an original form ordered from the Internal Revenue Service. You can find and download copies of form 1098 from the Internet but those copies are not scannable. If you use downloaded copies when issuing form 1098 you will be fined $50 per return. The government only wants to receive scannable copies.

You can order form 1098 by calling 1-800-TAX-FORM or order them online from the IRS website.

Form 1098 Demographic Information

In the first box insert the recipient or lender’s name address and phone number. Beneath it insert the Federal ID number for the lender and the payer’s Social Security number. It is important to double check the Federal ID number and Social Security number for accuracy. An error in either of these two boxes will lead to inaccurate tax reporting.

After inserting the tax ID numbers, the payer’s (borrower) name and address including city state and zip code. Beneath the borrower address insert an account number. Account numbers are only required if the borrower has more than one account. If there is only one account, you can leave this box empty.

Mortgage Tax InformationMortgage Interest Statement

After completing the demographic information it’s time to insert the mortgage interest received from the borrower in Box 1 and any points received in Box 2. If there was a refund or an overpayment in interest during the tax year, insert that amount in Box 3 and enter the mortgage insurance premiums Box 4.

Completing Box 5 is optional. Box 5 is used for additional information such as the property address, insurance premiums paid from escrow or taxes paid on the property. Completing box 5 is not mandatory.

Additional Reading:

Form 1098

Form 1098 Instructions

About the author: Felicia A. Williams is a former insurance broker who is now a freelance writer.

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