Fillable Form 1098 - Mortgage Interest Statement

Instructions for Payer/Borrower

“buydown” mortgage. Such amounts are deductible by you only in certain

A person (including a financial institution, a governmental unit, and a cooperative

circumstances. Caution: If you prepaid interest in 2014 that accrued in full by

housing corporation) who is engaged in a trade or business and, in the course of

such trade or business, received from you at least $600 of mortgage interest

January 15, 2015, this prepaid interest may be included in box 1. However, you

cannot deduct the prepaid amount in 2014 even though it may be included in

(including certain points) on any one mortgage in the calendar year must furnish

box 1. If you hold a mortgage credit certificate and can claim the mortgage

this statement to you.

interest credit, see Form 8396. If the interest was paid on a mortgage, home

If you received this statement as the payer of record on a mortgage on which

equity, line of credit, or credit card loan secured by your personal residence, you

there are other borrowers, furnish each of the other borrowers with information

may be subject to a deduction limitation.

about the proper distribution of amounts reported on this form. Each borrower is

Box 2. Not all points are reportable to you. Box 2 shows points you or the seller

entitled to deduct only the amount he or she paid and points paid by the seller

paid this year for the purchase of your principal residence that are required to be

that represent his or her share of the amount allowable as a deduction. Each

borrower may have to include in income a share of any amount reported in box 3.

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

If your mortgage payments were subsidized by a government agency, you

points not reported in box 2 may also be deductible. See Pub. 936 to figure the

may not be able to deduct the amount of the subsidy. See the instructions for

amount you can deduct.

Form 1040, Schedule A, C, or E for how to report the mortgage interest. Also,

Box 3. Do not deduct this amount. It is a refund (or credit) for overpayment(s)

for more information, see Pub. 936 and Pub. 535.

of interest you made in a prior year or years. If you itemized deductions in the

Payer's/Borrower's identification number. For your protection, this form may

year(s) you paid the interest, you may have to include part or all of the box 3

show only the last four digits of your social security number (SSN), individual

amount on the “Other income” line of your 2014 Form 1040. No adjustment to

taxpayer identification number (ITIN), or adoption taxpayer identification number

your prior year(s) tax return(s) is necessary. For more information, see Pub. 936

(ATIN). However, the issuer has reported your complete identification number to

and Itemized Deduction Recoveries in Pub. 525.

the IRS, and, where applicable, to state and/or local governments.

Box 4. The interest recipient may use this box to give you other information,

Account number. May show an account or other unique number the lender has

such as the address of the property that secures the debt, real estate taxes, or

assigned to distinguish your account.

insurance paid from escrow.

Box 1. Shows the mortgage interest received by the recipient/lender during the

Future developments. For the latest information about developments related to

year. This amount includes interest on any obligation secured by real property,

Form 1098 and its instructions, such as legislation enacted after they were

including a home equity, line of credit, or credit card loan. This amount does not

published, go to

include points, government subsidy payments, or seller payments on a

Form 1098 - Mortgage Interest Statement - 2014 Page 4

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