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Instructions for Payer/Borrower
A person (including a financial institution, a governmental unit, and a cooperative Box 2. Shows the outstanding principal on the mortgage as of January 1, 2021.
housing corporation) who is engaged in a trade or business and, in the course of If the mortgage originated in 2021, shows the mortgage principal as of the date
such trade or business, received from you at least $600 of mortgage interest of origination. If the recipient/lender acquired the loan in 2021, shows the
(including certain points) on any one mortgage in the calendar year must furnish mortgage principal as of the date of acquisition.
this statement to you. Box 3. Shows the date of the mortgage origination.
If you received this statement as the payer of record on a mortgage on which Box 4. Do not deduct this amount. It is a refund (or credit) for overpayment(s)
there are other borrowers, furnish each of the other borrowers with information of interest you made in a prior year or years. If you itemized deductions in the
about the proper distribution of amounts reported on this form. Each borrower is year(s) you paid the interest, you may have to include part or all of the box 4
entitled to deduct only the amount he or she paid and points paid by the seller amount on the “Other income” line of your 2021 Schedule 1 (Form 1040). No
that represent his or her share of the amount allowable as a deduction. Each adjustment to your prior year(s) tax return(s) is necessary. For more information,
borrower may have to include in income a share of any amount reported in box 4. see Pub. 936 and Itemized Deduction Recoveries in Pub. 525.
If your mortgage payments were subsidized by a government agency, you Box 5. If an amount is reported in this box, it may qualify to be treated as
may not be able to deduct the amount of the subsidy. See the instructions for deductible mortgage interest. See the 2021 Schedule A (Form 1040) instructions
Schedule A, C, or E (Form 1040) for how to report the mortgage interest. Also, and Pub. 936.
for more information, see Pub. 936 and Pub. 535.
Payer’s/Borrower’s taxpayer identification number (TIN). For your protection, Box 6. Not all points are reportable to you. Box 6 shows points you or the seller
this form may show only the last four digits of your TIN (SSN, ITIN, ATIN, or EIN). paid this year for the purchase of your principal residence that are required to be
However, the issuer has reported your complete TIN to the IRS. reported to you. Generally, these points are fully deductible in the year paid, but
you must subtract seller-paid points from the basis of your residence. Other
Account number. May show an account or other unique number the lender has points not reported in box 6 may also be deductible. See Pub. 936 to figure the
assigned to distinguish your account. amount you can deduct.
Box 1. Shows the mortgage interest received by the recipient/lender during the Box 7. If the address of the property securing the mortgage is the same as
year. This amount includes interest on any obligation secured by real property, the payer’s/borrower’s, either the box has been checked, or box 8 has been
including a mortgage, home equity loan, or line of credit. This amount does not completed.
include points, government subsidy payments, or seller payments on a Box 8. Shows the address or description of the property securing the mortgage.
“buydown” mortgage. Such amounts are deductible by you only in certain
circumstances. Box 9. If more than one property secures the loan, shows the number of properties
If you prepaid interest in 2021 that accrued in full by January 15, securing the mortgage. If only one property secures the loan, this box may be
2022, this prepaid interest may be included in box 1. However, you blank.
cannot deduct the prepaid amount in 2021 even though it may be Box 10. The interest recipient may use this box to give you other information,
▲! included in box 1. such as real estate taxes or insurance paid from escrow.
CAUTION Box 11. If the recipient/lender acquired the mortgage in 2021, shows the date of
If you hold a mortgage credit certificate and can claim the mortgage interest acquisition.
credit, see Form 8396. If the interest was paid on a mortgage, home equity loan, Future developments. For the latest information about developments related to
or line of credit secured by a qualified residence, you can only deduct the Form 1098 and its instructions, such as legislation enacted after they were
interest paid on acquisition indebtedness, and you may be subject to a published, go to www.irs.gov/Form1098.
deduction limitation. FreeFile. Go to www.irs.gov/FreeFile to see if you qualify for no-cost online
federal tax preparation, e-filing, and direct deposit or payment options.
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