Tax season is here, and if you’re a new homeowner, you should know that you will receive a tax form from your mortgage lender this year this year – your Form 1098, otherwise known as your Mortgage Interest Statement. You can use this form to report how much mortgage interest you’ve paid to the Internal Revenue Service (IRS).
If you’re a Newrez borrower, we will provide this form to you on or before January 31. Read on for a guide to this important tax document.
Why Do I Receive a Form 1098?
Your lender is required by law to send this document to you if you paid $600 or more in interest on your mortgage during the previous year. If you did not spend at least $600, you will not receive a Mortgage Interest Statement.
The form is a benefit to you as a homeowner, because it enables you to see how much total interest you paid for the year, which you may then be able to deduct from your taxes. Consult with a tax professional on how to do this.
Want to know more about the interest you pay on your mortgage? Read this article.
What Is Included on a Form 1098?
Here’s how to read your Form 1098:
- Box 1: Here your lender includes the mortgage interest they’ve received from you for the year.
- Box 2: This box shows the remaining principal balance for your mortgage.
- Box 3: The date when your mortgage originated.
- Box 4: If you overpaid on mortgage interest and it was refunded, the amount will be stated here.
- Box 5: If you’re paying for private mortgage insurance or other mortgage insurance premiums, they will be included here.
- Box 6: This box indicates any mortgage points you might be able to deduct on your taxes.
- Box 7: This is a checkbox stating whether the address for this particular mortgage is the same as the borrower’s address.
- Box 8: If the mortgage borrower’s address is different from the address of the property that this mortgage applies to, then the address of the mortgaged property is listed here.
- Box 9: States the number of properties tied to the mortgage.
- Box 10: Includes any real estate taxes paid on your property during the year.
- Box 11: If the lender acquired the mortgage during the year, the date is stated here.
What If I Have More Than One Mortgage?
The IRS dictates that property owners should file a separate 1098 for each of their mortgages. Learn more on the IRS website.
How Do I Get my Form 1098?
If you’re a Newrez customer, we will mail this form to you prior to the end of January. You can also access this form through your online account. Sign in and then click on your loan number to go to your dashboard. Click on Statements and choose 1098 Yearly.
If you haven’t yet received your Form 1098 from us, you can turn on Notifications through your online account so we can notify you when it’s available. Click the down arrow beside your profile icon and click MyProfile from the pulldown menu. Then select Contact Preferences and Notifications to choose your notification preferences.
What If My Mortgage Was Transferred from Another Loan Servicer?
If your loan is transferred to Newrez from another loan servicer, your end-of-year tax information from your prior servicer will be included in the 1098 you receive from Newrez.
I Have More Questions About My Form 1098.
For any other questions regarding the receipt of your 1098, log in to your account, click on your loan number to navigate to your dashboard and use our live chat function to speak with a member of our team.
For questions related to filing your taxes, reach out to a tax professional or peruse the IRS website.
