1098 Mortgage Interest

Use the 1098 Mortgage Interest form to record mortgage interest received from or refunded to the borrower. The information can then be used on a custom form or report.

Lender Information

  1. To change the lender information, right-click any lender field to open the Business Contacts window and select a different lender. You can also type new lender information and optionally right-click to add a new contact to your business contacts.
  2. Type the lender's Tax ID.

Borrower Information

  1. To change the borrower information, right-click any borrower field to open the Borrower Contacts window and select a different borrower. You can also type new borrower information and optionally right-click to add a new contact to your business contacts.
  2. Type the borrower's Social Security Number and the loan number.

Mortgage Interest Information

To accommodate the IRS requirements for reporting mortgage interest, the 1098 Mortgage Interest input form support reporting for two different tax years, the closing year of the loan, and the subsequent year.

  • 1098 Interest for Tax Year (fields 3614 and 3616) - Calculated, read-only field that displays the 1098 interest for the tax year.

  • Mortgage Interest received (fields 3615 and 3617) - Calculated, editable field for the mortgage interest received. For the closing year, the pre-paid interest at closing (field 334) plus the year-to-date interest paid for the calendar year. For the subsequent year, the year-to-date interest paid for the calendar year. Click the Lock icons to edit the field.

    • Seller Payments: Do not report in box 1 of Form 1098 any interest paid by a seller on a purchaser's/borrower's mortgage, such as on a "buy-down" mortgage. For example, if a real estate developer deposits an amount in escrow and tells you to draw on that escrow account to pay interest on the borrower's mortgage, do not report in box 1 the interest received from that escrow account. Also, do not report in box 1 any lump sum paid by a real estate developer to pay interest on a purchaser's/borrower's mortgage. However, if you wish, you may use box 10 to report to the payer of record any interest paid by the seller. (Source: Instructions for Form 1098 (2018) )

  • Outstanding Mgt. Principal (field 4095) - Type the value of the outstanding mortgage principal.

  • Mortgage Origination Date (field 2553) - Type the date on which the loan funds are transferred or disbursed.

  • Points paid on purchase of principal residence and Points Paid (fields 1191 and 3618) - For the closing year, the origination or discount points from lines 801 and 802 of the 2010 or 2015 Itemization. The entry will be blank or zero for the subsequent year. Note that the seller-paid portion of the borrower points are included in the Points paid on purchase of principal residence amount. Click the Lock icons to edit the field.

  • Is address of property securing mortgage the same as PAYER'S/BORROWER'S address? (field 4103) - Indicates that the address of the property securing mortgage is the same as the payer's or borrower's address.

  • If this checkbox is selected:

  • The Address of property securing mortgage address fields are disabled.

  • If the property securing mortgage has no address fields are disabled.

  • If Copy from Present button is selected on Borrower Summary - Processing, Is address of property securing mortgage the same as PAYER’S/BORROWER’S address? checkbox is automatically selected.

  • Refund of overpaid interest (fields 1192 and 3619) - Type the amount of any refunds for overpayment of interest.

  • MI Premiums (fields 3842 and 3843) - Calculated, editable field for the mortgage insurance premiums received. Click the Lock icons to edit the field.

  • Copy from Subject Property Button - When this button is selected:

  • Is address of property securing mortgage the same as PAYER’S/BORROWER’S address? (field ID 4103) is disabled.

  • Subject Property Address (field ID 11) from the Borrower Summary - Processing populates the Address (field ID 4097) on the 1098 Mortgage Interest Form.

  • Subject Property City (field ID 12) from the Borrower Summary - Processing populates the City (field ID 4098) on the 1098 Mortgage Interest Form.

  • Subject Property State (field ID 13) from the Borrower Summary - Processing populates the State (field ID 4099) on the 1098 Mortgage Interest Form.

  • Subject Property Zip (field ID 14) from the Borrower Summary - Processing populates the Zip (field ID 4100) on the 1098 Mortgage Interest Form

  • Other Information (fields 1194, 1195, 3620, and 3621) - Type additional information related to the interest information, for example, the subject property address.