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What is a Form 1098 Mortgage Interest Tax Form? (1098-MORT)

IRS Form 1098-MORT, also known as 1098 Mortgage Interest, is used to report mortgage interest payments made on a property such as a building or land. The primary user of this form is business, banks, and other individuals whose business involves providing mortgage loans for the purchase of real property. Borrowers that make payments of $600 or more on the interest of their mortgage loans may receive a 1098 mortgage interest and enter the amount as a deduction on their induvial income tax during that tax year. Notice that with 1098-MORT it is the lender who is receiving payments that must report the information to the IRS and send copies to the induvial(s) they receive payment from; In contrast, the payers are the ones that receive a copy and a deduction.

A mortgage is any obligation secured by real property. The filer must get their 1098s sent to each of their borrowers on time. Here at Tax2efile, we offer to print and mailing services as well as e-mailing services so you can avoid the inconvenience.

How to file Form 1098 Mortgage?

1098 MORT Form
Information required to file Form 1098-MORT
  • Recipient’s/Lender’s Information
  • Payer’s/Borrower’s Information
  • Account number
  • Mortgage interest-related details

Watch our step by step video for Form 1098-MORT

Filer Instructions
  • Box 1: Mortgage Interest Received From Payer(s)/Borrower(s)
  • 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 Purchase of Principal Residence
  • Box 7: Address of Property Securing Mortgage
  • Box 8: Address or Description of Property Securing Mortgage
  • Box 9: Number of Mortgaged Properties
  • Box 10: Other Enter any other item you wish to report to the payer, 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
  • Box 11: Mortgage Acquisition Date If you acquired the mortgage in the calendar year, enter the date of acquisition. Otherwise, leave this box blank.

Common Filers for Form 1098-MORT?

Senders must file a 1098 mortgage Form for each borrower from whom they receive $600 in mortgage interest payment for real property.

  • Governmental Unit
  • Cooperative housing corporation
  • Collection agents
  • Foreign interest

If interest is paid by a non-resident alien, the filer must file Form 1098 to report the interest only if all or part of the security for the mortgage is located in the United States. If points are received as part of the mortgage interest totaling $600 or more (including points) the point must also be reported on 1098. If interest payments are less than $600 or have not been received through the course of their trade or business, they are not required to file a 1098 mortgage interest. So, if the filer holds the mortgage on a personal residence and the buyer pays the mortgage to the filer, they are exempt from filing. On the contrary, if their business is not a lender but they still receive $600 in mortgage interest payments as part of your trade or business you will be required to file a 1098-MORT

When to File Form 1098 Mortgage?

Filing Type Deadline
Recipient copy January 31st
IRS Paper Filing February 28th
IRS Electronic Filing March 31st

Note: If the due date/deadline falls on a Saturday, Sunday, or federal holiday, the filer will need to E-file on the next business day.

Form 1098-MORT

Form 1098 mortgage tax form is for individuals that pay $600 or more in mortgage interest for the year Form 1098-MORT allows the individual to claim the deduction on their tax returns. Receipts that receive this payment through the course of their trade or business must also use Form 1098-MORT to report the income for the tax year.

For more information on Form 1098-MORT please visit IRS.

Still Have Questions?

Use Form 1098, Mortgage Interest Statement, to report mortgage interest (including points, defined later) of $600 or more you received during the year in the course of your trade or business from an individual, including a sole proprietor.

Anyone who is engaged in a trade or business or may be in the course of such trade or business, of receiving $600 or more of mortgage interest (or $600 or more of MIP, if section 163(h)(3)(E) applies for the reporting year) on any one mortgage during the calendar year.

Details required to file Form 1098-MORT are: Recipient’s/Lender’s & Payer’s/Borrower’s Name, Address, TINs Mortgage interest received, Outstanding mortgage, origination date, Refund of overpaid, Insurance premium, Points paid and Number of properties securing the mortgage.

Using our fast electronic service, you can complete your filing within 5 minutes.

Yes, Tax2efile offers a bulk upload feature that allows the user to upload all the Payers to an excel sheet for a faster process.

Tax2efile allows you to correct a mistake to the borrowers’ information for TINs, Names & amounts.

To file Form 1098-MORT for a single return the filing fee is $3.25.

Yes, Tax2efile offers printing and mailing service! Our dedicated team will print and mail out each form you filed.

The IRS requires Form 1098-MORT to be submitted by February 28 through the mail and by March 31 if you file the form electronically however, recipients’ copy should be mailed by January 31.

The penalty can be from $50 per 1098-MORT form, the maximum penalty can be up to $194,000. The penalty increases to $100 per 1098 form if you submit more than 30 days after the due date, but by August 1; the maximum penalty is $556,500. If you file after August 1, the penalty increases to $280 per 1098 form, with a maximum of $3,392,000. Additionally, there are penalties for failure to furnish the payee statement.

If you have more questions, please refer to our FAQ page.

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