Guides
Form 1098: The Mortgage Interest Statement, Explained
Form 1098, the Mortgage Interest Statement, reports the mortgage interest, points, and mortgage insurance premiums you paid to a lender during the calendar year. Your lender files it with the IRS and sends you a copy by January 31 when you pay $600 or more in interest on a single mortgage. You use the figures, primarily Box 1, to claim the mortgage interest deduction on Schedule A, but only if you itemize.
The form does not create a deduction by itself. It is an information return. The deduction depends on whether you itemize, whether the loan is secured by a qualified home, and whether the balance sits under the acquisition-debt limit. This guide walks through each box, the $750,000 cap, points, mortgage insurance premiums, and the itemizing test that decides whether the form matters to your return at all.
Who issues Form 1098 and when
Any lender engaged in a trade or business that receives $600 or more of mortgage interest from an individual during the year must file Form 1098 with the IRS and send you a copy. The $600 threshold is measured per mortgage, and the recipient copy is due to you by January 31 of the year after the interest was paid.
The filer is the “interest recipient.” That can be a bank, a credit union, a mortgage servicer, a governmental unit, a cooperative housing corporation, or a real estate developer that financed the sale. If you paid less than $600 of interest on a mortgage, the lender is not required to issue the form, though the interest can still be deductible if you can substantiate it. Interest you pay to a private individual (a seller-financed note, for example) often does not generate a 1098, so you report it directly on Schedule A with the payee’s name and taxpayer ID.
What each box on Form 1098 reports
Form 1098 uses numbered boxes 1 through 11. Box 1 carries the deductible figure most filers care about; the rest supply context the IRS uses to check your deduction against the loan. The table below summarizes each box.
| Box | Label | What it reports | Deduction relevance |
|---|---|---|---|
| 1 | Mortgage interest received | Total interest you paid on the loan during the year, including on home equity loans or lines of credit secured by real property | The core figure entered on Schedule A, line 8a |
| 2 | Outstanding mortgage principal | Loan balance as of January 1 (or the origination/acquisition date if later) | Used to test the $750,000 / $1,000,000 acquisition-debt limit |
| 3 | Mortgage origination date | Date the original lender created the loan | Determines which debt limit applies (pre or post December 15, 2017) |
| 4 | Refund of overpaid interest | Interest refunded or credited from a prior year | Do not deduct; may be taxable if you deducted it before |
| 5 | Mortgage insurance premiums | Qualified MIP of $600 or more (VA, FHA, RHS, or private) | Deductible again starting tax year 2026 (see below) |
| 6 | Points paid on purchase of principal residence | Points the borrower paid directly on a main-home purchase | May be fully deductible in the year paid (see below) |
| 7 | Property securing the mortgage | Checkbox or address confirming the collateral is your residence | Confirms the loan is secured by a qualified home |
| 8 | Property address | Street address of the property securing the loan | Identification only |
| 9 | Number of properties | Count if more than one property secures the mortgage | Flags multi-property loans |
| 10 | Other | Servicer notes, often real estate taxes or insurance paid from escrow | Informational; real estate tax may be separately deductible |
| 11 | Mortgage acquisition date | Date the current recipient acquired the loan (if mid-year) | Used when a loan is sold or transferred |
Box 1: the mortgage interest that drives the deduction
Box 1 shows the total mortgage interest you paid during the calendar year, and it is the number you carry to Schedule A. It includes interest on a first mortgage, a refinance, and often a home equity loan or line of credit, as long as the debt is secured by real property.
Box 1 excludes several items by design. It does not include mortgage insurance premiums (those sit in Box 5), points (Box 6), or interest a government program or the seller paid on your behalf. If you paid interest to more than one servicer because your loan was sold during the year, you may receive two 1098s; add the Box 1 amounts together, and confirm they do not double-count the same period.
Box 6: points and when they are deductible
Box 6 reports points you paid directly on the purchase of your main home. Points are prepaid interest, usually expressed as a percentage of the loan (one point equals 1% of the principal), and in many cases they are fully deductible in the year of the purchase rather than spread over the life of the loan.
To deduct purchase points in full in the year paid, the IRS generally requires that the loan buy or build your main home, that charging points is an established practice in your area, that the points do not exceed the usual amount, and that you paid them from your own funds rather than rolling them into the loan. Points on a refinance, or points that fail these tests, are typically deducted ratably over the loan term. If you refinance again or pay off the loan early, any remaining unamortized points may be deductible in that later year.
Box 5: mortgage insurance premiums and the 2026 reinstatement
Box 5 reports qualified mortgage insurance premiums of $600 or more, covering private mortgage insurance and government programs (VA, FHA, and Rural Housing Service). The deduction for these premiums lapsed after the 2021 tax year, so for returns covering 2022 through 2025 the Box 5 figure was reported but not deductible.
The One Big Beautiful Bill Act, signed July 4, 2025, reinstates the mortgage insurance premium deduction and makes it permanent beginning with tax year 2026 (returns filed in 2027). The historical income limit still applies: the deduction phases out for higher earners, historically starting at $100,000 of adjusted gross income ($50,000 if married filing separately) and disappearing above $109,000. Check the current-year Schedule A instructions, because the phase-out figures can be adjusted.
The $750,000 acquisition-debt limit
The mortgage interest deduction is capped by the size of your “acquisition debt,” the loan used to buy, build, or substantially improve a qualified home. For debt incurred after December 15, 2017, you may deduct interest on up to $750,000 of that debt ($375,000 if married filing separately). For debt taken on before that date, the older $1,000,000 limit ($500,000 MFS) still applies.
Box 2 (outstanding principal) and Box 3 (origination date) let the IRS check your Box 1 interest against the right cap. If your average balance exceeds the limit, only the portion of interest tied to the capped amount is deductible, and you compute the deductible fraction using the worksheet in IRS Publication 936. Interest on home equity debt is deductible only when the borrowed funds were used to buy, build, or substantially improve the home securing the loan; a home equity line spent on other purposes does not qualify, even though its interest appears in Box 1.
You only benefit if you itemize
Form 1098 helps your tax bill only if you itemize deductions on Schedule A. If your total itemized deductions, including mortgage interest, do not exceed the standard deduction, the interest in Box 1 changes nothing.
For 2025 returns, the standard deduction is $15,000 for single filers and $30,000 for married filing jointly, and it is higher for 2026 after inflation and OBBBA adjustments. Because the standard deduction is large, many homeowners with modest mortgages take it and never use their 1098. To decide, add your mortgage interest, deductible points, state and local taxes (capped), charitable gifts, and other itemized items, then compare the total to your standard deduction. State and local levies such as property taxes count toward the same capped total. If itemizing wins, enter Box 1 interest and any deductible Box 6 points on Schedule A. Your marginal rate, set by the federal income tax brackets, determines how much each deducted dollar is actually worth. If you also own rental or business property, the interest may instead flow to Schedule E or Schedule C rather than Schedule A.
Frequently asked questions
Do I have to report Form 1098 if I take the standard deduction?
No. Form 1098 is an information return, not something you attach or transcribe when you take the standard deduction. The IRS already has its copy. You use the Box 1 figure only if you itemize on Schedule A and the mortgage qualifies. Schedule A has ridden along with the return since the early days chronicled in the evolution of Form 1040. If the standard deduction gives you a larger write-off, you can keep the 1098 for your records and move on.
What if I did not receive a Form 1098 but paid mortgage interest?
You can still deduct qualifying mortgage interest even without the form. Lenders are not required to issue a 1098 when interest is under $600, and seller-financed loans from individuals often generate none. Report the interest on Schedule A, and for seller-financed debt include the recipient’s name, address, and taxpayer identification number. Keep your loan statements to substantiate the amount if the IRS asks.
Why are the Box 1 amounts on my two 1098 forms different from what I expected?
If your loan was sold or transferred during the year, each servicer issues a 1098 for the interest it received, so you may need to add two Box 1 figures. Refinancing mid-year can also split the interest across two lenders. Add the amounts, but confirm the two forms cover different periods so you do not double-count. A large Box 1 on a refinance may also reflect points rolled in, which are handled separately in Box 6.
Is the mortgage insurance premium in Box 5 deductible?
It depends on the tax year. The deduction lapsed after 2021, so premiums paid in 2022 through 2025 were reported in Box 5 but not deductible. Under the One Big Beautiful Bill Act signed July 4, 2025, the deduction returns permanently starting with tax year 2026 (filed in 2027), subject to an income phase-out that historically began at $100,000 of adjusted gross income. Confirm the current phase-out in the Schedule A instructions.
How does the $750,000 limit affect my deduction?
If your acquisition debt stays under $750,000 (for loans after December 15, 2017), all the Box 1 interest tied to that debt is generally deductible. Above the limit, only the interest attributable to the first $750,000 counts, and you calculate the deductible share using the Publication 936 worksheet. Loans taken before December 16, 2017 keep the older $1,000,000 cap, which is why Box 3 (origination date) matters.
Can I deduct points shown in Box 6?
Often yes, if they were paid on the purchase of your main home and meet the IRS tests: charging points is customary in your area, the amount is not excessive, and you paid them from your own funds. Purchase points meeting these tests are usually deductible in full the year you buy. Points on a refinance are generally spread over the loan term, with any remaining balance deductible if you pay the loan off early.
Reviewed by The Ledgerism Editorial Team. Last reviewed: July 2026.