INSTRUCTIONS : MORTGAGE INTEREST STATEMENT (1098 Form)
The 1098 form is a United States Internal Revenue Service tax form used by an individual homeowner who is seeking tax credits for home mortgage interest payments. The form is a short summary of total interest paid throughout a tax year.
A 1098 Form can be obtained through the I.R.S' website or by obtaining the documents through a local tax office.
The form is to be used when a homeowner elects to receive federal tax credits for the interest paid on a home mortgage. The form is to be filled out by the mortgage company receiving payments.
1. The recipient of the mortgage payments must fill out the red copy to submit to the IRS. Start by putting your general contact information in the upper left box. Include your name, address, and telephone number.
2. State the mortgage company's federal identification number and the payer's social security number in the appropriate boxes below the contact box.
3. Next, put the borrower's name and contact information, including their address.
4. In the bottom left box, put the account number of the mortgage payments, if applicable according to the instructions provided.
5. The boxes on the right must contain the specific amounts covered by the mortgage.
6. In box 1, provide the total mortgage interest amounts received from the borrower over the tax year.
7. For box 2, indicate the points paid on purchase of the principle residence by the borrower.
8. If the borrower overpaid interest over the year, indicate how much overpayment was refunded in box 3.
9. The red copy is to be submitted to the IRS in order to report the mortgage interests paid on a borrower's home.
10. The black copy is to be provided to the borrower for their own personal tax information.
11. Once completed, the Form 1098 should be retained for future records by the mortgage company.