Instructions For Form 1098 - 2017 (Page 5 of 6) in pdf

not otherwise required to report, but if you do, you are

number (ITIN), adoption taxpayer identification number

subject to the rules in these instructions.

(ATIN), or employer identification number (EIN)) on payee

statements. Truncation is not allowed on any documents

The reimbursement must be reported on Form 1098 for

the filer files with the IRS. See part J in the 2017 General

the year in which the reimbursement is made. No change

Instructions for Certain Information Returns for additional

should be made to the prior year Form 1098 because of

information.

this reimbursement. Report the total reimbursement even

if it is for overpayments made in more than 1 year.

Recipient's/Lender's Name, Address, and

Telephone Number Box

To be reportable, the reimbursement must be a refund

or credit of mortgage interest received in a prior year that

Enter the name, address, and telephone number of the

was required to be reported for that prior year by any

filer of Form 1098. Use this same name and address on

interest recipient on Form 1098. Only the person who

Form 1096.

makes the reimbursement is required to report it on Form

Payer's/Borrower's Name and Address Boxes

1098. For example, if you bought a mortgage on which

interest was overpaid in a prior year, you made a

Enter the name and address, in the appropriate boxes, of

reimbursement of the overpaid interest, and the previous

the person who paid the interest (payer of record).

mortgage holder was required to report mortgage interest

Be careful to enter the recipient's and payer's

on Form 1098 in the prior year, you must file Form 1098 to

information in the proper boxes.

report the reimbursement because you are the one

TIP

making the reimbursement.

Example. In 2015, you received $5,000 of mortgage

Account Number

interest from the payer/borrower and reported that amount

The account number is required if you have multiple

on Form 1098 for 2015. In 2017, you determined that

accounts for a payer/borrower for whom you are filing

interest due on the mortgage for 2015 was $4,500, and

more than one Form 1098. Additionally, the IRS

the payer/borrower had overpaid $500. You refunded the

encourages you to designate an account number for all

$500 overpayment to the payer/borrower in 2017. If you

Forms 1098 that you file. See part L in the 2017 General

received $600 or more of interest on the mortgage from

Instructions for Certain Information Returns.

the payer/borrower in 2017, you must report the $500

refund in box 4 of the 2017 Form 1098. No change to the

Box 1. Mortgage Interest Received from

2015 Form 1098 is required. If, instead of refunding the

Payer(s)/Borrower(s)

$500 overpayment, you credited the payer/borrower's

Enter the interest (not including points) received on the

2017 mortgage interest payments due, $500 is still shown

mortgage from borrowers during the calendar year.

in box 4, and the interest received from the payer/

Include interest on a mortgage, a home equity loan, or a

borrower in 2017 shown in box 1 must include the $500

line of credit or credit card loan secured by real property.

credit.

Do not include government subsidy payments, seller

Overpayment and reimbursement in same year. If

payments, or prepaid interest that does not meet the

you reimburse interest in the same year it is overpaid, do

exception explained under Prepaid Interest, earlier.

not report the overpayment on Form 1098 as interest

Interest includes prepayment penalties and late charges

received during the year or as a reimbursement of

unless the late charges are for a specific mortgage

overpaid interest. For example, if the borrower paid

service.

$5,000 and you reimbursed $500 of that amount in 2017,

A cooperative housing corporation that receives

enter $4,500 in box 1 as interest paid by the borrower. Do

any cash part of a patronage dividend from the

not enter the $500 reimbursement in box 4.

TIP

National Consumer Cooperative Bank must

Interest on reimbursement. A financial institution (or its

reduce the interest to be reported on each

middleman) that pays interest of $10 or more on the

tenant-stockholder's Form 1098 by a proportionate

reimbursement must report that interest (under section

amount of the cash payment in the year the cooperative

6049) on Form 1099-INT, Interest Income. Others that pay

receives the cash payment. See Rev. Proc. 94-40, 1994-1

interest of $600 or more on the reimbursement must

C.B. 711.

report that interest (under section 6041) on Form

1099-INT. Do not include such interest on Form 1098.

Box 2. Outstanding Mortgage Principal as of

1/1/2017

Statements to Payers of Record

Enter the amount of outstanding principal on the mortgage

If you are required to file Form 1098, you must provide a

as of January 1, 2017. If the mortgage originated during

statement to the payer of record. For more information

2017 or you acquired the mortgage during 2017, leave

about the requirement to furnish a statement to the payer

this box blank.

of record, see part M in the 2017 General Instructions for

Certain Information Returns.

Box 3. Mortgage Origination Date

Truncating payer's/borrower's taxpayer identification

Enter the date of the origination of the mortgage.

number on payee statements. Pursuant to Treasury

Regulations section 301.6109-4, all filers of this form may

truncate a payee’s taxpayer identification number (social

security number (SSN), individual taxpayer identification

-5-

Instructions for Form 1098 (2017)

Instructions For Form 1098 - 2017 Page 5

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