Form 1098 is used for mortgage interest statement filing. It helps report mortgage interest received from individual borrowers during the calendar year. For the 2026 tax year, filers also need to watch Box 5 more closely because qualified mortgage insurance premium reporting matters again under current IRS guidance.
This guide explains how to file Form 1098, who must file Form 1098, what the main boxes mean, the Form 1098 deadline, and how electronic filing of Form 1098 works through 1099Online.
Who Must File Form 1098?
Form 1098, Mortgage Interest Statement, is filed by a person or business that receives $600 or more of mortgage interest during the year in the course of a trade or business from an individual borrower, including a sole proprietor.
The rule applies per mortgage, not per borrower. If the same borrower has two separate mortgages, each mortgage is tested separately against the $600 threshold.
A separate Form 1098 is filed for each reportable mortgage. Filers may include banks, mortgage lenders, credit unions, loan servicers, governmental units, cooperative housing corporations, and certain real estate businesses that provide financing in the course of business.
Payments from corporations, partnerships, trusts, estates, associations, or companies are not reported on Form 1098 unless the payer is a sole proprietor.
Form 1098 Filing Requirements
Start with the basic Form 1098 test: Did the business receive $600 or more in mortgage interest on a loan secured by real property in the course of its trade or business?
For Form 1098 purposes, a mortgage generally means an obligation secured by real property. In simple terms, the property must back the loan and if the loan is not secured by real property, Form 1098 is not required. This is why lenders and servicers should check the loan setup instead of relying only on product names, since some home-related loans may not qualify for Form 1098 reporting.
Once you confirm the loan is reportable, gather and verify the following:
- Name, address, and taxpayer identification number of the borrower
- Lender or servicer legal name, address, and EIN
- Mortgage account number
- Mortgage interest received during the calendar year
- Outstanding mortgage principal
- Mortgage origination date
- Refund or credit of overpaid interest, if any
- Mortgage insurance premiums, if applicable
- Points paid on the purchase of a principal residence
- Property address or legal description
- Number of properties securing the mortgage, if needed
- Mortgage acquisition date, if the mortgage was acquired during the year
Large filers should reconcile loan-level records before year-end. This helps prevent wrong borrower names, mismatched TINs, and incorrect mortgage-level totals.
How to File Form 1098 in Five Practical Steps
1. Confirm that the loan is reportable
Start by confirming that the loan is a mortgage secured by real property. Do not rely only on product labels inside the servicing system. A secured mortgage and an unsecured consumer loan should not be treated the same for Form 1098 mortgage interest reporting. Form 1098 reports mortgage interest received from an individual, including a sole proprietor.
2. Apply the $600 threshold per mortgage
The $600 rule is for each mortgage loan individually. Don’t aggregate smaller interests on several loans because they are in the same name.
For example, if one borrower paid $400 on one mortgage and $350 on another, the lender does not combine them to force Form 1098 filing. Each mortgage is reviewed on its own.
3. Before entering boxes, reconcile the mortgage data
The best filing process starts with a review of the data before proceeding to form entry. Review year-end servicing records for borrower payments, refunds, points, principal balance, and property information.
Be thorough in this step, especially if loans were transferred, modified, refinanced, or corrected during the year.
4. Complete the core boxes correctly
Use the Form 1098 box instructions carefully because even if the amount is right, putting it in the wrong box can still create a filing issue.
| Form 1098 Box | What It Reports |
|---|---|
| Box 1 | Mortgage interest received from the borrower |
| Box 2 | Outstanding mortgage principal |
| Box 3 | Mortgage origination date |
| Box 4 | Refund of overpaid interest |
| Box 5 | Mortgage insurance premiums |
| Box 6 | Points paid on the purchase of the principal residence |
| Box 7 | Check the box if the property address is the same as the borrower’s mailing address |
| Box 8 | Property address or description |
| Box 9 | Number of mortgaged properties |
| Box 10 | Other information the filer wants to provide |
| Box 11 | Mortgage acquisition date |
5. Furnish borrower statements and file with the IRS
Once the form is reviewed, furnish Copy B to the payer of record and file Copy A with the IRS. Keep filing proof, recipient copy records, and correction history in case questions come later.
Form 1098 Filing Deadlines for 2026 Tax Year
For 2026 mortgage interest reported in early 2027, the main deadlines are:
| Task | Deadline |
|---|---|
| Furnish recipient (borrower) statement | February 1, 2027 |
| Paper file with IRS | March 1, 2027 |
| Electronically file with the IRS | March 31, 2027 |
| eFile mandate | 10 or more aggregate information returns |
January 31 and February 28, 2027, fall on Sundays, so those deadlines move to the next business day.
The 10-return eFile rule is based on aggregate information returns, not just Forms 1098. A filer with multiple form types should count the total filing volume before choosing paper filing.
How to File Form 1098 Online Using 1099Online
1099Online gives lenders, servicers, and other filers a guided way to eFile Form 1098 online for the 2026 tax year.
The process is simple:
- First, create an account and access the filing dashboard.
- Then, select Form 1098 and add lender or servicer details.
- Once that is done, manually enter borrower and mortgage information or bulk upload using CSV or Excel.
- Before filing, review borrower details, loan totals, and box entries.
- If you are satisfied with the data, electronically file Form 1098 with the IRS.
- Last but not least, provide borrower copies by PDF download, print-and-mail, or electronic delivery with recipient consent.
Bulk upload and refiling after rejection can save time during the January reporting timeframe for higher-volume filers. This also makes it easier for teams to maintain IRS filing records, deliver to recipients, and correct errors.
OBBBA Update for Form 1098: Why Box 5 Matters Again
For 2026 reporting, Box 5 may apply again to mortgage insurance premiums received on certain reportable mortgages.
IRS 2026 guidance says mortgage insurance premiums may be reportable again in Box 5 when the Form 1098 Box 5 rules apply.
Lenders and servicers should review loan records for mortgage insurance premiums received during the calendar year. If $600 or more in qualified mortgage insurance premiums is received on a reportable mortgage, the amount may need to be reported in Box 5 under the IRS Form 1098 instructions.
FIRE to IRIS System Upgrade
Beginning with tax year 2026 and filing season 2027, IRIS will be the only IRS intake system for information returns, and FIRE will not be available after its 2026 year-end shutdown.
For Form 1098 filers, this means eFiling is not only about meeting the 10-return requirement. It is also about having an IRIS-ready filing process before deadlines arrive.
Using a platform like 1099Online can help simplify the transition because the workflow is built for secure online filing, recipient copy handling, and IRS submission support.
Common Form 1098 Filing Mistakes
Before submitting Form 1098, check for these common issues:
- Applying the $600 threshold by borrower rather than by mortgage
- Filing for a loan that is not secured by real property
- Reporting payments received from a corporation or partnership that do not belong on Form 1098
- Missing Box 5 when qualified mortgage insurance premiums apply
- Leaving out the mortgage origination date
- Reporting points that do not meet Form 1098 rules
- Using the wrong borrower TIN
- Missing the borrower statement deadline
- Filing on paper when eFiling is required
FAQs
1. Is the $600 threshold applied per borrower?
No. Apply the $600 threshold to each mortgage separately. If the same borrower has more than one mortgage, do not combine the interest from those loans to decide whether Form 1098 is required. For example, if a borrower paid $400 in interest on one mortgage and $350 on another, neither mortgage meets the $600 threshold on its own, so the lender does not file Form 1098 just because the borrower paid $750 in total.
2. Can Form 1098 be eFiled?
Yes. Electronic filing is required when the filer has 10 or more aggregate information returns.
3. Do I file Form 1098 for a corporation or a partnership?
No. Form 1098 applies to mortgage interest received from an individual, including a sole proprietor.
4. Is Form 1098 the same as Form 1098-E or Form 1098-T?
No. Form 1098 reports mortgage interest. Form 1098-E reports student loan interest. Form 1098-T reports tuition statement information.
File Form 1098 accurately, meet key deadlines to avoid penalties levied by the IRS, and reduce correction risk with a clean filing process.