Instructions for IRS Form 1098 "Mortgage Interest Statement"

This document contains official instructions for IRS Form 1098, Mortgage Interest Statement - a tax form released and collected by the Internal Revenue Service (IRS), a subdivision of the U.S. Department of the Treasury. An up-to-date fillable IRS Form 1098 is available for download through this link.

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2020
Department of the Treasury
Internal Revenue Service
Instructions for Form 1098
Mortgage Interest Statement
Section references are to the Internal Revenue Code
complete these copies online for furnishing statements to
unless otherwise noted.
recipients and for retaining in your own files.
Future Developments
Specific Instructions
For the latest information about developments related to
Use Form 1098, Mortgage Interest Statement, to report
Form 1098 and its instructions, such as legislation
mortgage interest (including points, defined later) of $600
enacted after they were published, go to
IRS.gov/
or more you received during the year in the course of your
Form1098.
trade or business from an individual, including a sole
What's New
proprietor. Report only interest on a mortgage, defined
later.
Mortgage insurance premiums (MIP). At the time
File a separate Form 1098 for each mortgage. The
these instructions went to print, Congress had not
$600 threshold applies separately to each mortgage, so
extended the applicability of section 163(h)(3)(E) to
you are not required to file Form 1098 for a mortgage on
provide for the deductibility of MIP for 2020. To see if the
which you have received less than $600 in interest, even if
applicability of this provision has been extended, and
an individual paid you over $600 in total on multiple
therefore reporting is required, go to IRS.gov/Form1098.
mortgages. You may, at your option, file Form 1098 to
Reminders
report mortgage interest of less than $600, but if you do,
you are subject to the rules in these instructions.
General instructions. In addition to these specific
instructions, you should use the 2020 General Instructions
If an overpayment of interest on an adjustable rate
for Certain Information Returns. Those general
mortgage or other mortgage was made in a prior year and
instructions include information about the following topics.
you refund (or credit) that overpayment, you may have to
Who must file.
file Form 1098 to report the refund (or credit) of the
When and where to file.
overpayment. See
Reimbursement of Overpaid
Interest,
Electronic reporting.
later.
Corrected and void returns.
Also use Form 1098 to report MIP of $600 or more you
Statements to recipients.
received during the calendar year in the course of your
Taxpayer identification numbers (TINs).
trade or business from an individual, including a sole
Backup withholding.
proprietor, but only if section 163(h)(3)(E) applies. See the
Penalties.
instructions for
Box 5, Mortgage Insurance Premiums
on
Other general topics.
page 6.
You can get the general instructions at
General
Instructions for Certain Information
Returns, available at
Exceptions
IRS.gov/1099GeneralInstructions, or IRS.gov/Form1098.
You need not file Form 1098 for interest received from a
Online PDF fillable Copies B and C. To ease statement
corporation, partnership, trust, estate, association, or
furnishing requirements, Copies B and C are fillable online
company (other than a sole proprietor) even if an
in a PDF format available at IRS.gov/Form1098. You can
individual is a coborrower and all the trustees,
Obligation Classification Table
IF an obligation is...
THEN...
incurred after 1987
it is a mortgage if real property that is located inside or outside the United States
secures all or part of the obligation.
1
incurred after 1984 but before 1988
it is a mortgage only if secured primarily by real property.
in existence on December 31, 1984
it is not a mortgage if, at the time the obligation was incurred, the interest recipient
reasonably classified the obligation as other than a mortgage, real property loan, real
estate loan, or other similar type of obligation.
2
This applies even though the interest recipient classifies the obligation as other than a mortgage, for example, as a commercial loan.
1
For example, if an obligation incurred in 1983 was secured by real property, but the interest recipient reasonably classified the obligation as a commercial loan
2
because the proceeds were used to finance the borrower's business, the obligation is not considered a mortgage and reporting is not required. However, it is not
reasonable to classify those obligations as other than mortgages for reporting purposes if over half the obligations in a class established by the interest recipient are
primarily secured by real property.
Sep 23, 2019
Cat. No. 27977Q
2020
Department of the Treasury
Internal Revenue Service
Instructions for Form 1098
Mortgage Interest Statement
Section references are to the Internal Revenue Code
complete these copies online for furnishing statements to
unless otherwise noted.
recipients and for retaining in your own files.
Future Developments
Specific Instructions
For the latest information about developments related to
Use Form 1098, Mortgage Interest Statement, to report
Form 1098 and its instructions, such as legislation
mortgage interest (including points, defined later) of $600
enacted after they were published, go to
IRS.gov/
or more you received during the year in the course of your
Form1098.
trade or business from an individual, including a sole
What's New
proprietor. Report only interest on a mortgage, defined
later.
Mortgage insurance premiums (MIP). At the time
File a separate Form 1098 for each mortgage. The
these instructions went to print, Congress had not
$600 threshold applies separately to each mortgage, so
extended the applicability of section 163(h)(3)(E) to
you are not required to file Form 1098 for a mortgage on
provide for the deductibility of MIP for 2020. To see if the
which you have received less than $600 in interest, even if
applicability of this provision has been extended, and
an individual paid you over $600 in total on multiple
therefore reporting is required, go to IRS.gov/Form1098.
mortgages. You may, at your option, file Form 1098 to
Reminders
report mortgage interest of less than $600, but if you do,
you are subject to the rules in these instructions.
General instructions. In addition to these specific
instructions, you should use the 2020 General Instructions
If an overpayment of interest on an adjustable rate
for Certain Information Returns. Those general
mortgage or other mortgage was made in a prior year and
instructions include information about the following topics.
you refund (or credit) that overpayment, you may have to
Who must file.
file Form 1098 to report the refund (or credit) of the
When and where to file.
overpayment. See
Reimbursement of Overpaid
Interest,
Electronic reporting.
later.
Corrected and void returns.
Also use Form 1098 to report MIP of $600 or more you
Statements to recipients.
received during the calendar year in the course of your
Taxpayer identification numbers (TINs).
trade or business from an individual, including a sole
Backup withholding.
proprietor, but only if section 163(h)(3)(E) applies. See the
Penalties.
instructions for
Box 5, Mortgage Insurance Premiums
on
Other general topics.
page 6.
You can get the general instructions at
General
Instructions for Certain Information
Returns, available at
Exceptions
IRS.gov/1099GeneralInstructions, or IRS.gov/Form1098.
You need not file Form 1098 for interest received from a
Online PDF fillable Copies B and C. To ease statement
corporation, partnership, trust, estate, association, or
furnishing requirements, Copies B and C are fillable online
company (other than a sole proprietor) even if an
in a PDF format available at IRS.gov/Form1098. You can
individual is a coborrower and all the trustees,
Obligation Classification Table
IF an obligation is...
THEN...
incurred after 1987
it is a mortgage if real property that is located inside or outside the United States
secures all or part of the obligation.
1
incurred after 1984 but before 1988
it is a mortgage only if secured primarily by real property.
in existence on December 31, 1984
it is not a mortgage if, at the time the obligation was incurred, the interest recipient
reasonably classified the obligation as other than a mortgage, real property loan, real
estate loan, or other similar type of obligation.
2
This applies even though the interest recipient classifies the obligation as other than a mortgage, for example, as a commercial loan.
1
For example, if an obligation incurred in 1983 was secured by real property, but the interest recipient reasonably classified the obligation as a commercial loan
2
because the proceeds were used to finance the borrower's business, the obligation is not considered a mortgage and reporting is not required. However, it is not
reasonable to classify those obligations as other than mortgages for reporting purposes if over half the obligations in a class established by the interest recipient are
primarily secured by real property.
Sep 23, 2019
Cat. No. 27977Q
beneficiaries, partners, members, or shareholders of the
Form 1098 to report an amount received from its
payer of record are individuals.
tenant-stockholders that represents the
tenant-stockholders' proportionate share of interest
Mortgage Defined
described in section 216(a)(2). This rule applies only to
tenant-stockholders who are individuals and from whom
A mortgage is any obligation secured by real property.
the cooperative has received at least $600 of interest
Use the Obligation Classification Table to determine
during the year. See the
TIP
under box 1, later.
which obligations are mortgages.
Real property is land and generally anything built on it,
Collection agents. Generally, if you receive reportable
growing on it, or attached to the land. Among other things,
interest payments (other than points) on behalf of
real property includes a manufactured home with a
someone else and you are the first person to receive the
minimum living space of 400 square feet and a minimum
interest, such as a servicing bank collecting payments for
width of more than 102 inches and which is of a kind
a lender, you must file this form. Enter your name,
customarily used at a fixed location. See section 25(e)
address, TIN, and telephone number in the recipient entity
(10).
area. You must file this form even though you do not
include the interest received in your income but you
If the loan is not secured by any real property, you are
merely transfer it to another person. If you wish, you may
not required to file Form 1098. However, the borrower
enter the name of the person for whom you collected the
may be entitled to a deduction for qualified residence
interest in box 10. The person for whom you collected the
interest, such as in the case of a loan for a boat. The boat
interest need not file Form 1098.
must have sleeping space, cooking facilities, and toilet
facilities. The borrower uses the boat as a home.
However, there is an exception to this rule for any
period that (a) the first person to receive or collect the
Lines of credit and credit card obligations. Interest
interest does not have the information needed to report on
(other than points) received on any mortgage that is in the
Form 1098, and (b) the person for whom the interest is
form of a line of credit or credit card obligation is
received or collected would receive the interest in its trade
reportable regardless of how you classified the obligation.
or business if the interest were paid directly to such
A borrower incurs a line of credit or credit card obligation
person. If (a) and (b) apply, the person on whose behalf
when the borrower first has the right to borrow against the
the interest is received or collected is required to report on
line of credit or credit card, whether or not the borrower
Form 1098. If interest is received or collected on behalf of
actually borrows an amount at that time.
another person other than an individual, such person is
presumed to receive the interest in a trade or business.
Who Must File
File this form if you are engaged in a trade or business
Foreign interest recipient. If you are not a U.S. person,
and, in the course of such trade or business, you receive
you must file Form 1098 if the interest is received in the
from an individual $600 or more of mortgage interest (or
United States. A U.S. person is a citizen or resident of the
$600 or more of MIP, if section 163(h)(3)(E) applies for
United States, a domestic partnership or corporation, or a
2020) on any one mortgage during the calendar year. See
nonforeign estate or trust. If the interest is received
the instructions for
box
5, later, for MIP reporting
outside the United States, you must file Form 1098 if (a)
you are a controlled foreign corporation, or (b) at least
requirements. You are not required to file this form if the
50% of your gross income from all sources for the 3-year
interest is not received in the course of your trade or
period ending with the close of the tax year preceding the
business. For example, you hold the mortgage on your
receipt of interest (or for such part of the period as you
former personal residence. The buyer makes mortgage
payments to you. You are not required to file Form 1098.
were in existence) was effectively connected with the
conduct of a trade or business in the United States.
For information about who must file to report points,
see
Who must report
points, later.
Designation agreement. An interest recipient, including
a recipient of points, can designate a qualified person to
Not in the lending business. If you receive mortgage
file Form 1098 and to provide a statement to the payer of
interest of $600 or more in the course of your trade or
record.
business, you are subject to the requirement to file Form
A qualified person is either (a) a trade or business in
1098, even if you are not in the business of lending
which the interest recipient is under common control as
money. For example, if you are a real estate developer
specified in Regulations section 1.414(c)-2, or (b) a
and you provide financing to an individual to buy a home
designee, named by the lender of record or by a qualified
in your subdivision, and that home is security for the
person, who either was involved in the original loan
financing, you are subject to this reporting requirement.
transaction or is a subsequent purchaser of the loan.
However, if you are a physician not engaged in any other
business and you lend money to an individual to buy your
A lender of record is the person who, at the time the
home, you are not subject to this reporting requirement
loan is made, is named as the lender on the loan
because you did not receive the interest in the course of
documents and whose right to receive payment from the
your trade or business as a physician.
payer of record is secured by the payer of record's
principal residence. Even if the lender of record intends to
Governmental unit. A governmental unit (or any
sell or otherwise transfer the loan to a third party after the
subsidiary agency) receiving mortgage interest from an
close of the transaction, such intention does not change
individual of $600 or more must file this form.
who is the lender of record.
Cooperative housing corporation. A cooperative
housing corporation is an interest recipient and must file
-2-
Instructions for Form 1098 (2020)
The agreement must be in writing, identify the
The IRS will not assert information reporting penalties
mortgage(s) and calendar years for which the qualified
against mortgage servicers that report as interest
person must report, and be signed by the designator and
mortgage assistance payments received under a State
the designee. A designee may report points on Form 1098
Program funded by the Housing Finance Agency
(as having been paid directly by the payer of record) only
Innovative Fund for the Hardest Hit Housing Markets
if the designation agreement contains the designator's
(HFA Hardest Hit Fund) if the mortgage servicer notifies
representation that it did not lend such amount to the
the homeowner that the amounts reported on the Form
payer of record as part of the overall transaction. The
1098 are overstated because they include governmental
agreement need not be filed with the IRS, but the
subsidy payments. State housing finance agencies
designator must keep a copy of it for 4 years after the
receiving funds allocated from the HFA Hardest Hit Fund
close of the year in which the loan is made.
may comply with the mortgage interest reporting
requirement by reporting payments on either Form
A designated qualified person is subject to any
1098-MA, Mortgage Assistance Payments, available at
applicable penalties as if it were the interest recipient.
IRS.gov/Form1098MA, or on the statement described in
Thus, a designator is relieved from liability for any
section 2.04 of Rev. Proc. 2011-55, available at
applicable penalties.
IRS.gov/irb/2011-47_IRB#RP-2011-55. For more
Nonresident Alien Interest Payer
information, see Notice 2017-40, available at
IRS.gov/irb/
2017-32_IRB#NOT-2017-40, amplified and modified by
You must file Form 1098 to report interest paid by a
Notice 2018-63, available at
IRS.gov/irb/
nonresident alien only if all or part of the security for the
2018-34_IRB#NOT-2018-63.
mortgage is real property located in the United States.
Seller Payments
Report the interest based on the following.
Do not report in box 1 of Form 1098 any interest paid by a
If the interest is paid within the United States, you must
seller on a purchaser's/borrower's mortgage, such as on a
request from the payer the applicable Form W-8
“buy-down” mortgage. For example, if a real estate
(withholding certificate) as described in Regulations
developer deposits an amount in escrow and tells you to
section 1.1441-1(e)(1).
draw on that escrow account to pay interest on the
If the interest is paid outside the United States, you
borrower's mortgage, do not report in box 1 the interest
must satisfy the documentary evidence standard
received from that escrow account. Also, do not report in
described in Regulations section 1.6049-5(c).
box 1 any lump sum paid by a real estate developer to pay
Payer of Record
interest on a purchaser's/borrower's mortgage. However,
if you wish, you may use box 10 to report to the payer of
The payer of record is the individual carried on your books
record any interest paid by the seller. See
Points
next for
and records as the principal borrower. If your books and
information about reporting seller-paid points in box 6.
records do not indicate which borrower is the principal
borrower, you must designate one.
Points
If you permit a subsequent purchaser of the property to
You must report certain points paid for the purchase of the
assume the loan without releasing the first purchaser from
payer of record's principal residence on Form 1098. You
personal liability, the subsequent purchaser is the payer of
must report points if the points, plus other interest on the
record. Such subsequent purchaser's name, address, and
mortgage, are $600 or more. For example, if a borrower
TIN must appear on Form 1098.
pays points of $300 and other mortgage interest of $300,
the lender has received $600 of mortgage interest and
Multiple borrowers. Even though there may be more
must file Form 1098.
than one borrower on the mortgage, you are required to
prepare Form 1098 only for the payer of record, and only if
Report the total points on Form 1098 for the calendar
such payer of record is an individual, showing the total
year of closing regardless of the accounting method used
interest received on the mortgage. Even if an individual is
to report points for federal income tax purposes.
a coborrower, no Form 1098 is required unless the payer
Who must report points. The lender of record or a
of record is also an individual.
qualified person must file Form 1098 to report all points
paid by the payer of record in connection with the
Payments by Third Party
purchase of the principal residence. If a designation
Report all interest received on the mortgage as received
agreement is in effect for a mortgage, only the person
from the borrower, except as explained under
Seller
designated in the agreement must file Form 1098 to report
Payments, later. For example, if the borrower's mother
all points on that mortgage. See
Designation
agreement,
makes payments on the mortgage, the interest received
earlier.
from the mother is reportable on Form 1098 as received
Amounts received directly or indirectly by a mortgage
from the borrower.
broker are treated as points to the same extent they would
However, do not report mortgage interest received
be treated as points if paid to and retained by the lender of
from any governmental unit (or any subsidiary agency).
record. The lender of record must report those points paid
For example, do not report any interest received as
to a mortgage broker.
housing assistance payments from the Department of
Reportable points. Report on Form 1098 points that
Housing and Urban Development (HUD) on mortgages
meet all the following conditions.
insured under section 235 of the National Housing Act.
-3-
Instructions for Form 1098 (2020)
1. They are clearly designated on the Settlement
Are computed as a percentage of the stated principal
Statement (Form HUD-1) as points; for example, “loan
loan amount;
origination fee” (including amounts for VA and FHA
Conform to an established business practice of
loans), “loan discount,” “discount points,” or “points.”
charging points in the area where the loan is issued and
do not exceed the amount generally charged in the area;
2. They are computed as a percentage of the stated
Are paid in connection with a loan incurred by the payer
principal loan amount.
of record to construct (or refinance construction of) a
3. They are charged under an established business
residence that is to be used, when completed, as the
practice of charging points in the area where the loan was
principal residence of the payer of record;
issued and do not exceed the amount generally charged
Are paid directly by the payer of record; and
in that area.
Are not allocable to an amount of principal in excess of
4. They are paid for the acquisition of the payer of
$750,000.
record's principal residence, and the loan is secured by
Amounts paid to refinance a loan to construct a
that residence. You may rely on a signed written
residence are not points to the extent they are allocable to
statement from the payer of record that states that the
debt that exceeds the debt incurred to construct the
proceeds of the loan are for the purchase of the payer of
residence.
record's principal residence.
Prepaid Interest
5. They are paid directly by the payer of record. Points
are paid directly if either (a) or (b) below applies.
Report prepaid interest (other than points) only in the year
in which it properly accrues.
a. The payer of record provides funds that were not
borrowed from the lender of record for this purpose as
Example. Interest received on December 20, 2020,
part of the overall transaction. The funds may include
that accrues by December 31, 2020, but is not due until
down payments, escrow deposits, earnest money applied
January 31, 2021, is reportable on the 2020 Form 1098.
at closing, and other funds actually paid over by the payer
Exception. Interest received during the current year that
of record at or before closing.
will properly accrue in full by January 15 of the following
b. The seller pays points on behalf of the payer of
year may be considered received in the current year, at
record. Points paid by the seller to the interest recipient on
your option, and is reportable on Form 1098 for the
behalf of the payer of record are treated as paid to the
current year. However, if any part of an interest payment
payer of record and then paid directly by the payer of
accrues after January 15, then only the amount that
record to the interest recipient.
properly accrues by December 31 of the current year is
reportable on Form 1098 for the current year. For
Report points paid under items 5a and 5b on the payer
example, if you receive a payment of interest that accrues
of record's Form 1098 in box 6.
for the period December 20 through January 20, you
cannot report any of the interest that accrues after
Exceptions. Do not report as points on Form 1098
December 31 for the current year. You must report the
amounts paid:
interest that accrues after December 31 on Form 1098 for
For loans to improve a principal residence;
the following year.
For loans to purchase or improve a residence that is not
the payer of record's principal residence, such as a
Prepaid Mortgage Insurance
second home, vacation, investment, or trade or business
Except for amounts paid to the Department of Veterans
property, even though the borrower may be entitled to
Affairs or the Rural Housing Service, payments allocable
amortize points paid for the purchase of a second home,
to periods after 2007 are treated as paid in the periods to
vacation home, etc., and deduct them over the life of the
which they are allocable.
loan;
For home equity or line of credit loan, even if secured
The Treasury Department has issued regulations for
by the principal residence;
allocating prepaid qualified mortgage insurance
For refinancing (see
Construction
loans, later),
premiums. Regulations section 1.163-11 applies to
including a loan to refinance a debt owed by the borrower
prepaid qualified mortgage insurance premiums paid or
under a land contract, a contract for deed, or similar forms
accrued on or after January 1, 2011, provided by the
of seller financing;
Federal Housing Administration or private mortgage
In lieu of items ordinarily stated separately on the Form
insurers. For regulations applicable before January 1,
HUD-1, such as appraisal fees, inspection fees, title fees,
2011, see Regulations section 1.163-11T.
attorney fees, and property taxes; and
To acquire a principal residence to the extent the points
Reimbursement of Overpaid Interest
are allocable to an amount of principal in excess of
You are required to report reimbursements of overpaid
$750,000.
interest aggregating $600 or more to a payer of record on
Construction loans. Amounts paid on a loan to
Form 1098. You are not required to report
construct a residence (construction loan) or to refinance a
reimbursements of overpaid interest aggregating less
loan incurred to construct a residence are reportable on
than $600 unless you are otherwise required to file Form
Form 1098 as points if they:
1098. That is, if you did not receive at least $600 of
Are clearly designated on the loan documents as points
mortgage interest during the year of reimbursement from
incurred in connection with the loan, such as loan
the person to whom you made the reimbursement, you
origination fees, loan discount, discount points, or points;
are not required to file Form 1098 merely to report a
-4-
Instructions for Form 1098 (2020)
reimbursement of less than $600. However, you may
filers of this form may truncate a payee’s TIN (social
report any reimbursement of overpaid interest that you are
security number (SSN), individual taxpayer identification
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. A recipient's/lender's TIN may
the year in which the reimbursement is made. No change
not be truncated on any form. See part J in the 2020
should be made to the prior year Form 1098 because of
General Instructions for Certain Information Returns for
this reimbursement. Report the total reimbursement even
additional information.
if it is for overpayments made in more than 1 year.
Recipient's/Lender's Name, Address, and
To be reportable, the reimbursement must be a refund
Telephone Number Box
or credit of mortgage interest received in a prior year that
was required to be reported for that prior year by any
Enter the name, address, and telephone number of the
interest recipient on Form 1098. Only the person who
filer of Form 1098. Use this same name and address on
makes the reimbursement is required to report it on Form
Form 1096.
1098. For example, if you bought a mortgage on which
Payer's/Borrower's Name and Address Boxes
interest was overpaid in a prior year, you made a
reimbursement of the overpaid interest, and the previous
Enter the name and address, in the appropriate boxes, of
mortgage holder was required to report mortgage interest
the person who paid the interest (payer of record).
on Form 1098 in the prior year, you must file Form 1098 to
Be careful to enter the recipient's and payer's
report the reimbursement because you are the one
information in the proper boxes.
making the reimbursement.
TIP
Example. In 2018, you received $5,000 of mortgage
interest from the payer/borrower and reported that amount
Account Number
on Form 1098 for 2018. In 2020, you determined that
The account number is required if you have multiple
interest due on the mortgage for 2018 was $4,500, and
accounts for a payer/borrower for whom you are filing
the payer/borrower had overpaid $500. You refunded the
more than one Form 1098. Additionally, the IRS
$500 overpayment to the payer/borrower in 2020. If you
encourages you to designate an account number for all
received $600 or more of interest on the mortgage from
Forms 1098 that you file. See part L in the 2020 General
the payer/borrower in 2020, you must report the $500
Instructions for Certain Information Returns.
refund in box 4 of the 2020 Form 1098. No change to the
2018 Form 1098 is required. If, instead of refunding the
Box 1. Mortgage Interest Received From
$500 overpayment, you credited the payer’s/borrower's
Payer(s)/Borrower(s)
2020 mortgage interest payments due, $500 is still shown
Enter the interest (not including points) received on the
in box 4, and the interest received from the payer/
mortgage from borrowers during the calendar year.
borrower in 2020 shown in box 1 must include the $500
Include interest on a mortgage, a home equity loan, or a
credit.
line of credit or credit card loan secured by real property.
Overpayment and reimbursement in same year. If
Do not include government subsidy payments, seller
you reimburse interest in the same year it is overpaid, do
payments, or prepaid interest that does not meet the
not report the overpayment on Form 1098 as interest
exception explained under
Prepaid
Interest, earlier.
received during the year or as a reimbursement of
Interest includes prepayment penalties and late charges
overpaid interest. For example, if the borrower paid
unless the late charges are for a specific mortgage
$5,000 and you reimbursed $500 of that amount in 2020,
service.
enter $4,500 in box 1 as interest paid by the borrower. Do
A cooperative housing corporation that receives
not enter the $500 reimbursement in box 4.
any cash part of a patronage dividend from the
TIP
Interest on reimbursement. A financial institution (or its
National Consumer Cooperative Bank must
middleman) that pays interest of $10 or more on the
reduce the interest to be reported on each
reimbursement must report that interest (under section
tenant-stockholder's Form 1098 by a proportionate
6049) on Form 1099-INT, Interest Income. Others that pay
amount of the cash payment in the year the cooperative
$600 or more of such interest in the course of their trade
receives the cash payment. See Rev. Proc. 94-40, 1994-1
or business must report that interest (under section 6041)
C.B. 711.
on Form 1099-INT. Do not include such interest on Form
1098.
Box 2. Outstanding Mortgage Principal
Enter the amount of outstanding principal on the mortgage
Statements to Payers of Record
as of January 1, 2020. If you originated the mortgage in
If you are required to file Form 1098, you must provide a
2020, enter the mortgage principal as of the date of
statement to the payer of record. For more information
origination. If you acquired the mortgage in 2020, enter
about the requirement to furnish a statement to the payer
the outstanding mortgage principal as of the date of
of record, see part M in the 2020 General Instructions for
acquisition.
Certain Information Returns.
Truncating payer's/borrower's TIN on payee state-
ments. Pursuant to Regulations section 301.6109-4, all
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Instructions for Form 1098 (2020)
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