What is a 1098 Form?
The 1098, also known as Mortgage Interest Statement, provides a report mortgage interest of $600 or more received during the year in the course of trade or business from an individual, including a sole proprietor.
Who Should File the 1098 Form?
Banks and mortgage companies are required to file 1098 forms.
When Should a 1098 Form be Filed?
1098 forms must be mailed to designated recipients on or before the last day of January and e-filed with the IRS before the 31st of March, annually.
Where Should a 1098 Form be Filed?
1098 forms must be filed to the IRS
Why is it Important to File 1098 Forms?
1098 forms provide a report of mortgage interest and certain mortgage insurance premiums of $600 or more.
The 1098 is used to report mortgage interest, including points, and some kind of mortgage insurance premiums amounting to $600 or more received from an individual (including sole proprietors) during the course of trade or business. Also applicable are the reimbursements of overpaid mortgage interest.
As per the definition by the IRS, a mortgage is “any obligation secured by real property,” which include the land and almost anything on it or attached to it. The 1098 applies to each mortgage and for multiple mortgages 1098 filing must be done separately if the $600 threshold is reached.
What are the exemptions under 1098?
1098 exemptions apply for mortgage interests received from the following:
- Other entities not classified as sole proprietors
NOTE: 1098 form has a different format from 1099 variations.