Form 1098 - Mortgage Interest Statement - 2013 Page 4
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6Instructions for Payer/Borrower
circumstances. Caution: If you prepaid interest in 2013 that accrued in full by
A person (including a financial institution, a governmental unit, and a cooperative
January 15, 2014, this prepaid interest may be included in box 1. However, you
housing corporation) who is engaged in a trade or business and, in the course of
cannot deduct the prepaid amount in 2013 even though it may be included in
such trade or business, received from you at least $600 of mortgage interest
box 1. If you hold a mortgage credit certificate and can claim the mortgage
(including certain points) on any one mortgage in the calendar year must furnish
interest credit, see Form 8396. If the interest was paid on a mortgage, home
this statement to you.
equity, line of credit, or credit card loan secured by your personal residence, you
If you received this statement as the payer of record on a mortgage on which
may be subject to a deduction limitation.
there are other borrowers, furnish each of the other borrowers with information
Box 2. Not all points are reportable to you. Box 2 shows points you or the seller
about the proper distribution of amounts reported on this form. Each borrower is
paid this year for the purchase of your principal residence that are required to be
entitled to deduct only the amount he or she paid and points paid by the seller
reported to you. Generally, these points are fully deductible in the year paid, but
that represent his or her share of the amount allowable as a deduction. Each
you must subtract seller-paid points from the basis of your residence. Other
borrower may have to include in income a share of any amount reported in box 3.
points not reported in box 2 may also be deductible. See Pub. 936 to figure the
If your mortgage payments were subsidized by a government agency, you
amount you can deduct.
may not be able to deduct the amount of the subsidy. See the instructions for
Box 3. Do not deduct this amount. It is a refund (or credit) for overpayment(s)
Form 1040, Schedule A, C, or E for how to report the mortgage interest. Also,
of interest you made in a prior year or years. If you itemized deductions in the
for more information, see Pub. 936 and Pub. 535.
year(s) you paid the interest, you may have to include part or all of the box 3
Payer's/Borrower's identification number. For your protection, this form may
amount on the “Other income” line of your 2013 Form 1040. No adjustment to
show only the last four digits of your social security number (SSN), individual
your prior year(s) tax return(s) is necessary. For more information, see Pub. 936
taxpayer identification number (ITIN), or adoption taxpayer identification number
and Itemized Deduction Recoveries in Pub. 525.
(ATIN). However, the issuer has reported your complete identification number to
Box 4. Shows mortgage insurance premiums which may qualify to be treated as
the IRS, and, where applicable, to state and/or local governments.
deductible mortgage interest. See the Schedule A (Form 1040) instructions.
Account number. May show an account or other unique number the lender has
Box 5. The interest recipient may use this box to give you other information,
assigned to distinguish your account.
such as the address of the property that secures the debt, real estate taxes, or
Box 1. Shows the mortgage interest received by the recipient/lender during the
insurance paid from escrow.
year. This amount includes interest on any obligation secured by real property,
Future developments. For the latest information about developments related to
including a home equity, line of credit, or credit card loan. This amount does not
Form 1098 and its instructions, such as legislation enacted after they were
include points, government subsidy payments, or seller payments on a
published, go to
“buydown” mortgage. Such amounts are deductible by you only in certain
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