Short answer: a business that receives $600 or more of mortgage interest from you in a calendar year on one mortgage must report it to the IRS and give you a written statement, on Form 1098, by January 31 of the next year. The statement shows the interest you paid (not counting points), points on a home purchase, the outstanding principal, the date the mortgage started, and the address of the property. This page explains the form only. It is general information, not tax, legal or financial advice; for your own return, see the IRS publications below or ask a tax professional.
Who must send one
Any person who, in the course of a trade or business, receives interest of $600 or more for a calendar year on any mortgage from an individual must file a return with the IRS (26 U.S.C. 6050H(a), LII, read October 30, 2026). A mortgage is any obligation secured by real property (6050H(e)). Government units are included (6050H(c)). When someone receives the interest on behalf of another person, only the first person to receive it must file (6050H(f)).
The IRS instructions add that the $600 threshold applies separately to each mortgage, that a person who is not in the lending business must still file if the interest is received in the course of their trade or business, and that someone who holds the mortgage on their own former home, for example, does not have to file (IRS Instructions for Form 1098, Rev. December 2026, read October 30, 2026). A servicer that collects payments for a lender, as the first to receive the interest, generally files the form.
What the statement shows
| Box | What it reports | Source |
|---|---|---|
| 1 | Mortgage interest received from you during the year, not counting points; it includes prepayment penalties and late charges unless the late charge is for a specific mortgage service | 6050H(b)(2)(B); instructions for box 1 |
| 2 | Outstanding principal as of January 1, or as of the origination date or acquisition date if that came during the year | 6050H(b)(2)(D); box 2 |
| 3 | The date the mortgage originated with the original lender, not the date a later holder acquired it | 6050H(b)(2)(E); box 3 |
| 4 | Refund or credit of interest overpaid in an earlier year | Box 4 |
| 5 | Mortgage insurance premiums of $600 or more, only if the Internal Revenue Code provision for them applies that year | Box 5 |
| 6 | Points paid on the purchase of your principal residence | 6050H(b)(2)(C); box 6 |
| 7 and 8 | The address or description of the property securing the mortgage | 6050H(b)(2)(F); boxes 7-8 |
| 9 | The number of properties securing the mortgage, if more than one | Box 9 |
| 10 | Other items the lender chooses to report, such as real estate taxes or insurance paid from escrow | Box 10 |
| 11 | The date the filer acquired the mortgage, if it did so during the year | Box 11 |
The statement to you must also give the name, address and phone number of the filer’s information contact (6050H(d)(1)). Seller payments, such as interest paid from a seller’s buy-down deposit, are not reported in box 1, and interest paid by a government unit is not reported; interest a relative pays on your mortgage is reported as received from you (instructions, Payments by Third Party and Seller Payments). When there is more than one borrower, the form goes to the payer of record, the borrower the lender’s records carry as the principal borrower (instructions, Payer of Record).
Points and the $600 threshold
Points count toward the $600 threshold. This example follows the one in the IRS instructions and is only for the math.
| Item | Example |
|---|---|
| Points paid on the purchase | $300 |
| Other mortgage interest | $300 |
| Total: $300 + $300 | $600 |
| At least $600? Form 1098 required | Yes |
For how points affect the cost of a loan, see mortgage discount points break-even.
When it arrives
The written statement must be furnished on or before January 31 of the year after the calendar year it covers (6050H(d)). So for interest paid in 2026, the statement is due by January 31, 2027. The IRS says the statement for each year should be sent to you by January 31 of the following year (IRS Publication 936, 2025 edition, page last updated April 30, 2026, read October 30, 2026).
If your loan moved to a new servicer
Each person who receives $600 or more of interest from you on the mortgage in the year files for the interest it received, and a filer that acquired the mortgage during the year enters the acquisition date in box 11 and the principal as of that date in box 2 (6050H(a); instructions for boxes 2 and 11). This example is only for the math, with example amounts for one calendar year.
| Item | Example |
|---|---|
| Interest received by the first servicer, January to June | $4,200 |
| Interest received by the new servicer, July to December | $4,000 |
| First servicer at least $600? | Yes |
| New servicer at least $600? | Yes |
| Interest shown on both statements together: $4,200 + $4,000 | $8,200 |
See what happens when your loan is sold to a new servicer for the notices you should get.
If the statement looks wrong or does not arrive
IRS Publication 936 explains how interest that was not reported on Form 1098, or not reported in full, is handled on a return. Your servicer’s information contact on the statement is the place to ask about the numbers. Questions to ask:
- Which months and payments does box 1 cover, and does it include interest paid at closing?
- Why is box 2 different from my loan balance on January 1?
- Was a corrected Form 1098 filed, and when will I get it?
- Did my loan move to another servicer this year, and will that servicer send its own statement?
- Were real estate taxes or insurance paid from escrow listed in box 10?
If debt on your home was cancelled during the year, that is reported on a different form; see cancelled loan debt and taxes. For your own return, use the IRS publications or ask a tax professional.
Checklist
- Look for a Form 1098 from each servicer that received $600 or more of interest from you during the year.
- Check the property address, origination date and acquisition date.
- Compare box 1 with your own payment records.
- Contact the information contact on the statement about any difference.
- Keep the statement with your tax records.
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Sources
- Cornell LII: 26 U.S. Code 6050H, Returns relating to mortgage interest received in trade or business from individuals
- IRS: Instructions for Form 1098 (Rev. December 2026, PDF)
- IRS: Publication 936 (2025), Home Mortgage Interest Deduction
Disclosure: Modern Lending Solutions is not a lender, loan broker or agent for any lender or loan broker, and does not make credit decisions. Any compensation we receive is paid by participating lenders, only for advertising services. This guide is general information, not financial or legal advice.