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Guide to IRS Form 1098-MORT Mortgage Interest Statement

A mortgage is an obligation secured by a real property, which could be land or any property built on it or attached to the land. Form 1098-MORT is used to report mortgage interest of $600 and above, that one receives during their business. A separate Form should be used separately for each mortgage. We can also use this form to report overpayment of interest at an adjustable-rate and other mortgages made in the previous year.

The different aspects of the Form 1098-Mort Mortgage Interest Statement

Form 1098-MORT should be filed if you are engaged in a trade or business and receive $600 or more as mortgage interest during the trade or business. The filing guidelines of this form are as follows.

      1. Box 1:Corresponds to the mortgage interest received by the lender or recipient during the year. It includes any obligation secured by real property such as a mortgage, home equity loan, and other lines of credit.
      2. Box 2: Shows the outstanding principal on the mortgage as on the date of origination. If the lender acquired the loan in 2021, it shows the mortgage principle as on the date of acquisition.
      3. Box 3: Enter the date of mortgage origination.
      4. Box 4: It corresponds to the refund for the overpayment of interest that you have made in the past years.
      5. Box 5: If you enter any amount in this box, it will be treated as deductible mortgage interest.
      6. Box 6: This box shows the points that either you or your seller paid for the purchase of a residence.
      7. Box 7: Check the box if the address of the mortgage is the same as that of the borrower or payer.
      8. Box 8: Shows the address of the description of the property that secures the mortgage.
      9. Box 9:If more than one property secures the loan, this box shows the number of properties that are securing the mortgage.
      10. Box 10:This shows other information such as real estate taxes or insurance paid.
      11. Box 11:This shows the date of acquisition if you acquire the mortgage in the year 2021.

Specific Instructions for filing the Form 1098-MORT

  • Use Form 1098 to report mortgage interest of $600 or more that you received during the course of the business in the calendar year.
  • File a separate Form for each mortgage. The $600 threshold applies to each mortgage.
  • At one’s discretion, they can file Form 1098 for interest rates less than $600.
  • There is no need to file this form for interest received from a partnership, corporation, trust, and estate.

If you engage in a trade or a business and receive a mortgage interest of $600 or more during your trade or business, then you should file Form 1098-MORT with the IRS. Government units, cooperative housing corporations, foreign interest recipients, and collection agents are obligated to file this Form before its due date of 31st March of every calendar year.

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