What is IRS Form 1098? Also called 1098 T
Form 1098, Mortgage Interest Statement, is used to report mortgage interest of $600 or more received by you during the year in the course of your trade or business. This mortgage interest is as received from an individual, including a sole proprietor.
This threshold amounting to $600 applies separately to each mortgage; thus, you should file a separate form 1098 for each mortgage. You may also opt to file Form 1098 for mortgage interest not amounting to or exceeding $600.
If there was an overpayment of interest on an Adjustable Rate Mortgage (ARM) or other mortgage was made in a previous year and you refund or credit that overpayment, you have to file this form to report the refund or credit of the payment as well.
An exception to filing the Form 1098 is interest received from a corporation, partnership, trust, estate, association, or company (other than sole proprietor).
Who Must File Form 1098
If you are engaged in a trade or business, and in the course of the same you receive from an individual the amount of $600 or more of mortgage interest on any one mortgage during the calendar year, you are required to file Form 1098. However, you are not required to file this form if the interest you received from a mortgage is not in the course of your trade or business. For instance, mortgage on your former personal residence is not covered under this Form.
When to File Form 1098
Form 1098 is filed on paper by February 29, 2016, or March 31, 2016 if filing electronically.