Mortgage interest paid is reported annually on a mortgage interest statement known as IRS Form 1098. The lender that received the interest prepares the mortgage interest statement at year end and mails it to the borrower; a copy is also sent to the IRS. The mortgage company is required to send a mortgage interest statement to any individual who pays a minimum of $600 interest in a calendar year. The form must be received by Feb. 1 of the following year.

Format

The Form 1098 will be mailed to the borrower by the mortgage lender. To ensure that the mortgage interest form is received by Feb. 1, it is often included with the final mortgage statement of the calendar year, perhaps printed on the back of the statement. The statement may be sent separately from the usual monthly statement. While all mortgage interest statements must include the same information, the format will vary by lender. The IRS does provide a template Form 1098, however, its use is not required.

Information

In addition to mortgage interest paid, the form must include premiums paid on mortgage insurance, deductible points paid, and whether a main home was purchased during the year. Other important information required on the form is the mortgage company's legal name and tax identification number. The borrower's name and Social Security number must also be on the form. If real estate taxes are paid by the lender from an escrow account, this information might be included.

Alternate Sources

If a taxpayer doesn't receive a mortgage interest statement in the mail, there are other options available. Most mortgage lenders will provide a printable form on the company website. The taxpayer must usually register an account to access this information. In most cases, registration simply requires you to answer questions to verify your identity. Then you must select a user name and password. The mortgage interest form is usually found in a section with a name such as "Tax Forms" or "Statement of Interest." The information is often available through the mortgage lenders' automated phone service. While this doesn't replace an actual document in case of audit, you can use the information to complete tax forms.

Source:

IRS Publication 936

More Information:

IRS Real Estate FAQs