Form 1098: Mortgage Interest Statement
Form 1098 is issued by mortgage lenders reporting total mortgage interest paid during the tax year. Borrowers use this form to claim the mortgage interest deduction on their federal tax return.
What It Reports
- Box 1: Mortgage interest received (deductible amount)
- Box 2: Outstanding principal balance
- Box 3: Mortgage origination date
- Box 5: Mortgage insurance premiums
- Box 10: Real estate taxes paid from escrow
Tax Deduction Rules
- Deductible on Schedule A (itemized deductions only)
- Limited to interest on $750,000 of acquisition debt (post-2017)
- Investment property interest deducted on Schedule E instead
- Refinance may generate two 1098s from different lenders
Issuance
Lenders must issue Form 1098 by January 31 for mortgages with $600+ in interest paid. Borrowers receive one form per qualifying mortgage.
Related Terms
- Closing — Points paid at closing reported on 1098
- Escrow — Taxes paid from escrow reported
- Equity — Principal balance tracks equity
Barnes Walker Title Services
Barnes Walker Title coordinates mortgage documentation and tax reporting for Florida real estate closings. Submit a title inquiry for assistance.
Reviewed by the attorneys at Barnes Walker, Goethe, Shea & Robinson, PLLC