What is Form 1098?
Your mortgage lender sends a 1098 when you paid $600 or more in mortgage interest during the year. It reports interest, points, mortgage insurance premiums, and the outstanding principal balance — all of which may be deductible on Schedule A if you itemize.
SupportedKey Boxes
| Box | Description | Where it flows |
|---|---|---|
| Box 1 | Mortgage interest received | Schedule A Line 8a |
| Box 2 | Outstanding mortgage principal | Informational (debt limit rules) |
| Box 3 | Mortgage origination date | Determines acquisition debt limit |
| Box 5 | Mortgage insurance premiums | Schedule A Line 8d |
| Box 6 | Points paid on purchase of residence | Schedule A Line 8c |
How PaisaTax Handles It
- Upload or manual add — one slot per mortgage/lender
- Aggregation: All mortgage interest (Box 1) sums to Schedule A Line 8a. Points (Box 6) sum to Line 8c. Mortgage insurance (Box 5) sums to Line 8d.
- Itemization trigger: Having mortgage interest may make itemizing more beneficial than the standard deduction.
Common Situations
- Multiple mortgages: Add one slot per lender. PaisaTax aggregates all interest for Schedule A.
- Points on purchase (Box 6): Fully deductible in the year of purchase for a primary residence acquisition. Points on refinancing are amortized over the loan term.
- Acquisition debt limits: Interest is deductible on up to $750,000 of mortgage debt ($375,000 MFS) for loans originated after December 15, 2017. Older loans use the $1M limit.