- 4 -
|
Instructions for Payer/Borrower
A person (including a financial institution, a governmental unit, and a cooperative Box 2. Shows the outstanding principal on the mortgage as of January 1 of the
housing corporation) who is engaged in a trade or business and, in the course of calendar year. If the mortgage originated in the calendar year, shows the
such trade or business, received from you at least $600 of mortgage interest mortgage principal as of the date of origination. If the recipient/lender acquired
(including certain points) on any one mortgage in the calendar year must furnish the loan in the calendar year, shows the mortgage principal as of the date of
this statement to you. acquisition.
If you received this statement as the payer of record on a mortgage on which Box 3. Shows the date of the mortgage origination.
there are other borrowers, furnish each of the other borrowers with information Box 4. Do not deduct this amount. It is a refund (or credit) for overpayment(s)
about the proper distribution of amounts reported on this form. Each borrower is of interest you made in a prior year or years. If you itemized deductions in the
entitled to deduct only the amount each borrower paid and points paid by the year(s) you paid the interest, you may have to include part or all of the box 4
seller that represent each borrower’s share of the amount allowable as a amount on the “Other income” line of your calendar year Schedule 1 (Form
deduction. Each borrower may have to include in income a share of any amount 1040). No adjustment to your prior year(s) tax return(s) is necessary. For more
reported in box 4. information, see Pub. 936 and Itemized Deduction Recoveries in Pub. 525.
If your mortgage payments were subsidized by a government agency, you Box 5. If an amount is reported in this box, it may qualify to be treated as
may not be able to deduct the amount of the subsidy. See the instructions for deductible mortgage interest. See the calendar year Schedule A (Form 1040)
Schedule A, C, or E (Form 1040) for how to report the mortgage interest. Also, instructions and Pub. 936.
for more information, see Pub. 936 and Pub. 535.
Payer’s/Borrower’s taxpayer identification number (TIN). For your protection, Box 6. Not all points are reportable to you. Box 6 shows points you or the seller
this form may show only the last four digits of your TIN (SSN, ITIN, ATIN, or EIN). paid this year for the purchase of your principal residence that are required to be
However, the issuer has reported your complete TIN to the IRS. reported to you. Generally, these points are fully deductible in the year paid, but
you must subtract seller-paid points from the basis of your residence. Other
Account number. May show an account or other unique number the lender has points not reported in box 6 may also be deductible. See Pub. 936 to figure the
assigned to distinguish your account. amount you can deduct.
Box 1. Shows the mortgage interest received by the recipient/lender during the Box 7. If the address of the property securing the mortgage is the same as
year. This amount includes interest on any obligation secured by real property, the payer’s/borrower’s, either the box has been checked, or box 8 has been
including a mortgage, home equity loan, or line of credit. This amount does not completed.
include points, government subsidy payments, or seller payments on a Box 8. Shows the address or description of the property securing the mortgage.
“buydown” mortgage. Such amounts are deductible by you only in certain
circumstances. Box 9. If more than one property secures the loan, shows the number of
properties securing the mortgage. If only one property secures the loan, this box
If you prepaid interest in the calendar year that accrued in full by may be blank.
January 15, of the subsequent year, this prepaid interest may be Box 10. The interest recipient may use this box to give you other information,
included in box 1. However, you cannot deduct the prepaid
▲! amount in the calendar year paid even though it may be included in such as real estate taxes or insurance paid from escrow.
CAUTION box 1. Box 11. If the recipient/lender acquired the mortgage in the calendar year,
If you hold a mortgage credit certificate and can claim the mortgage interest shows the date of acquisition.
credit, see Form 8396. If the interest was paid on a mortgage, home equity loan, Future developments. For the latest information about developments related to
or line of credit secured by a qualified residence, you can only deduct the Form 1098 and its instructions, such as legislation enacted after they were
interest paid on acquisition indebtedness, and you may be subject to a published, go to www.irs.gov/Form1098.
deduction limitation. Free File. Go to www.irs.gov/FreeFile to see if you qualify for no-cost online
federal tax preparation, e-filing, and direct deposit or payment options.
|