Key Takeaways
- Form 1098 reports mortgage interest payments of $600 or more. The form includes 11 numbered boxes, but the filer completes only the boxes that apply to the mortgage and transaction.
- Box 1 reports the mortgage interest received, while Box 4 reports a refund or credit of a prior-year overpayment.
- Qualifying seller-paid points may be reported in Box 6 if they meet the IRS reporting requirements.
- Boxes 7 and 8 identify the mortgaged property, while Box 9 reports the number of properties where a single mortgage is secured by multiple properties.
What Records Do Filers Need Before Filing Form 1098?
Form 1098, the Mortgage Interest Statement, requires lenders to report mortgage interest details across multiple boxes. Filing these Form 1098 boxes accurately starts with complete borrower, lender, and property records:
- Name, address, and TIN for both the lender and the borrower
- An account number. Required when a lender files more than one Form 1098 for a borrower with multiple accounts
- The total interest the lender received from the borrower
- Outstanding mortgage principal as of January 1, 2026, or the origination or acquiring date for new loans
- The mortgage’s origination date, and its acquisition date if the current filer acquired the loan during the year
- Any refund or credit issued for interest the borrower overpaid in a prior year
- Qualified mortgage insurance premiums of $600 or more, and any points that meet the IRS’s reportable-points conditions
- The property’s street address, or its Assessor Parcel Number (APN), and jurisdiction when no street address exists
Mortgage Reporting on Form 1098: Key Boxes Explained
Form 1098 boxes cover mortgage-related dollar amounts: principal, interest, refunds, mortgage insurance premiums, and points. Each box follows its own reporting rule.
Box 1: Mortgage Interest Received from Payer(s)/Borrower(s)
Form 1098 Box 1 reports the interest a borrower paid to the lender on the mortgage, including:
- Interest on a mortgage secured by real property
- Interest on a home equity loan secured by real property
- Interest on a line of credit or credit card loan secured by real property
- Prepayment penalties
- Late charges, unless charged for a specific mortgage service
- Prepaid interest that qualifies under the IRS’s prepaid interest exception rules
Box 4: Refund of Overpaid Interest
Form 1098 Box 4 reports the interest a lender refunds or credits after overcharging a borrower. The correct treatment depends on when the overpayment happened:
- If the lender overpays and refunds interest in the same year, the amount remains outside Box 1 entirely. The reported figure is already net of the refund.
- If a prior year’s overpayment is refunded this year, the lender reports that amount in Box 4. This applies to the year the refund happens.
- If a prior year’s overpayment is credited toward this year’s payments, the lender still reports it in Box 4. The lender also adds the credited amount to this year’s Box 1 total.
Reviewing the year the overpayment occurred prevents a filer from entering the same dollars twice.
Box 5: Mortgage Insurance Premiums
Form 1098 Box 5 reports qualified mortgage insurance premiums of $600 or more paid during the year. Qualified mortgage insurance can include coverage provided by:
- The Federal Housing Administration
- The Department of Veterans Affairs
- The Rural Housing Service, or a successor agency
- A private mortgage insurer
Box 6: Points Paid on Purchase of Principal Residence
Form 1098 Box 6 reports points paid to buy the principal residence or the primary residence. The following amounts are not reported as Box 6 points:
- Appraisal fees, inspection fees, title fees, attorney fees, and property taxes
- Points on a loan for a second home, vacation home, investment property, or business property
- Points on a home equity loan or line of credit
- Points paid to refinance a mortgage, except points allocable to construction debt when refinancing a construction loan
Form 1098 Boxes That Report Loan Balance and Dates
These Form 1098 boxes show a mortgage’s balance and timeline together.
Box 2: Outstanding Mortgage Principal
Form 1098 Box 2 reports the mortgage’s outstanding principal, though the exact date depends on when the loan was acquired or originated.
- Mortgage already existed on January 1: Report the outstanding principal as of January 1
- Mortgage originated during the year: Report the principal as of the origination date
- Existing mortgage acquired during the year: Report the outstanding principal as of the acquisition date
Box 3: Mortgage Origination Date
Box 3 always shows the mortgage’s original date of origination. This stays the same even when a new filer later acquires the loan.
Form 1098 Box 11: Mortgage Acquisition Date
Box 11 applies only when the current filer acquired an existing mortgage during the year. Leave Box 11 blank if the filer did not acquire the mortgage this year.
How Do Boxes 7, 8, and 9 Identify the Secured Property?
Boxes 7, 8, and 9 identifies the property behind a mortgage. These Form 1098 boxes report the address and description, as well as the total number of secured properties.
Form 1098 Box 7: Checkbox For Property Addresses That Match The Borrower’s Address
If the secured property’s address matches the borrower’s mailing address, the filer checks Box 7. The box may also be left blank, with reporting done in Box 8 instead. When the address differs, the filer completes Box 8 instead of checking Box 7.
Form 1098 Box 8: Address or Description of the Property
Box 8 identifies the property whenever Box 7 is not checked. The filer lists the street address, including the apartment number, city or town, state or province, country, and ZIP or foreign postal code.
If the property has no street address, the filer enters its jurisdiction and Assessor Parcel Number (APN). And when no APN is available, a description may be used instead.
Form 1098 Box 9: Number of Properties Securing the Mortgage
Box 9 reports the total number of properties if more than one property secures the mortgage. The filer completes Box 9 only when more than one property applies.
What Does Form 1098 Box 10 Report?
Box 10, labeled as “Other,” is a supplemental field on Form 1098. A lender uses this box only for information that is not reportable on any other boxes, such as:
- Real estate taxes
- Insurance paid from escrow
- Seller-paid interest, which a lender may disclose here instead of reporting it in Box 1
- Other information the lender wants to share with the borrower
- For a collection agent, the name of the person for whom the interest was collected
How Do Form 1098 Boxes Work Together for Common Mortgage Events?
Several Form 1098 boxes may apply to the same mortgage event. Reviewing them as a group helps a filer avoid missing a required box.
| Mortgage Event | Relevant Form 1098 Boxes | Why |
|---|---|---|
| A new mortgage originates during the year | 1, 2, 3 | The lender reports interest received, the opening principal, and the origination date together. |
| An existing mortgage is acquired during the year | 2, 3, 11 | Box 2 uses the acquisition-date balance, and Boxes 3 and 11 record separate dates. |
| Interest from a prior year is refunded or credited | 1 and 4 | Box 1 reports current-year interest, and Box 4 reports the prior-year reimbursement. |
| A borrower pays qualifying points along with regular interest | 1 and 6 | Box 1 interest excludes points, so qualifying points are reported separately in Box 6. |
| More than one property secures the mortgage | 7, 8, 9 | Boxes 7 and 8 identify one secured property, and Box 9 records the total number of properties. |
Explaining Form 1098 Box Reporting Scenarios
| Scenario | Filer Action |
|---|---|
| A third party pays the borrower’s mortgage | Report the interest as received from the borrower in Box 1. |
| A seller funds interest through a mortgage buydown | Do not report the seller-paid interest in Box 1; use Box 10 instead. |
| Prepaid interest carries into the next year | Report the prepaid interest in Box 1 for the year it accrues. Or elect the earlier year if it fully accrues by January 15; otherwise, report only the portion accruing by December 31. |
| A collection agent receives the mortgage interest first | The collection agent files Form 1098 under its own information and reports the interest in Box 1. |
| A borrower has separate mortgages with the same lender | File a separate Form 1098 for each mortgage the borrower holds. Add an account number in Box 7 if more than one Form 1098 is filed for that borrower. |
| A mortgage has multiple borrowers | File Form 1098 only for the individual payer of record, showing the total interest received on the mortgage in Box 1. |
| A cooperative housing corporation receives interest from tenant-stockholders | File Form 1098 for each individual tenant-stockholder’s proportionate share of interest in Box 1. |
FAQs
1. Do all Form 1098 boxes need to be filled in?
No, only the boxes that apply to the mortgage and the transaction need to be reported.
2. Can a lender report mortgage interest under $600?
Filing below the $600 threshold is generally not required, but the filer may choose to file.
3. Can Form 1098 Box 10 stay blank?
Yes, Form 1098 Box 10 is optional, so it can remain blank if there is nothing further to report.
4. Should mortgage insurance premiums appear in Form 1098 Box 1?
No, qualifying mortgage insurance premiums belong in Box 5, not Box 1.
5. Can seller-paid amounts appear on Form 1098?
Seller-paid interest does not belong in Box 1, though a filer may note it in Box 10. Qualifying seller-paid points may be reported in Box 6.
Match every mortgage to the correct Form 1098 box.
1099Online guides you through each Form 1098 box and securely e-files your return.