Haris Ashley
If you pay mortgage insurance premiums, you may be wondering why they are not listed on your Form 1098. One reason could be that the law permitting the deduction of mortgage insurance premiums is still under review, and therefore, your lender did not report it. Another reason could be that you are not required to file Form 1098 if the reimbursements of overpaid interest is less than $600 and you did not receive at least $600 of mortgage interest during the year of reimbursement. However, you can still enter the mortgage insurance premiums you paid into tax software, such as TurboTax, and if the tax break is approved, your return will be automatically updated.
| Characteristics | Values |
|---|---|
| Mortgage insurance premiums paid or accrued on or after January 1, 2011 | Report on Form 1098 |
| Mortgage insurance premiums paid before January 1, 2011 | Report on Form 1098 using Regulations section 1.163-11T |
| Mortgage insurance premiums of $600 or more | Report on Form 1098 |
| Mortgage insurance premiums less than $600 | Not required to report on Form 1098 |
| Interest received from a corporation, partnership, trust, estate, association, or company | Not reportable on Form 1098 |
| Interest received from an individual, including a sole proprietor | Reportable on Form 1098 |
| Interest received from a governmental unit or subsidiary agency | Not reportable on Form 1098 |
| Interest received from the Department of Veterans Affairs or the Rural Housing Service | Not reportable on Form 1098 |
| Interest accrued by January 15 of the following year | Reportable on Form 1098 for the current year |
| Interest accrued after January 15 | Reportable on Form 1098 for the following year |
| Mortgage insurance premiums not listed in Box 5 of Form 1098 | Can be entered manually in TurboTax |
| Deduction for mortgage insurance premiums | May not be allowed for the current year |
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What You'll Learn
The mortgage insurance deduction law is under review
The mortgage insurance deduction law is currently under review. Private mortgage insurance (PMI) has been tax-deductible for homeowners intermittently in recent decades. In 2019, Congress reintroduced a federal tax deduction that permitted homeowners paying PMI to write off the premiums for the 2018, 2019, 2020, and 2021 tax years. However, this deduction expired at the end of 2021, and it is not available for the 2024 tax year.
The expiration of the PMI deduction has prompted efforts to reinstate it. In February 2025, the Mortgage Insurance Tax Deduction Act of 2025 was introduced, aiming to bring back the tax deduction. This bill must pass through the House of Representatives and the Senate and be approved by the President to become law. Additionally, a coalition of business and advocacy groups joined forces in 2024 to urge lawmakers to reinstate the deduction, and their efforts are still pending.
The PMI deduction is only applicable under specific conditions. Homeowners must meet the eligibility criteria for the applicable tax years, and they must be able to file an amended tax return. Moreover, the deduction is allowed only if the mortgage on which PMI was paid was taken out on or after January 1, 2007. A home refinanced after that date also qualifies if it was the primary residence. There may be additional restrictions, such as limitations on the deduction for refinanced funds.
While the law is under review, homeowners who were eligible for the PMI tax deduction in previous years but did not take advantage of it may still be able to amend their old returns to claim it. It is important to stay informed about the evolving legislation and consult reliable sources for the most up-to-date information.
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You paid less than $600 in mortgage interest
If you paid less than $600 in mortgage interest, you are not required to file Form 1098. Form 1098 is a mortgage interest statement that details how much you paid in mortgage interest and points during the previous year. Your lender will send you this form, typically in January or early February, if you paid $600 or more in mortgage interest (including certain points) during the year.
The form serves as a summary of your mortgage interest payments, and your lender will also send a copy to the IRS for verification. If you paid less than $600 in mortgage interest, you may not receive Form 1098, and you are not required to file it. However, you may still be able to deduct mortgage interest under certain circumstances.
For example, if you used part of your house as a home office, you may be able to claim a deduction by filling out a Schedule C. Similarly, if you were a co-op apartment owner, rented out part of your home, or owned a timeshare, you may be eligible for a deduction. Additionally, if your home was under construction during the year, you may be able to claim a deduction for the portion of the year that the construction took place.
It's important to note that if you are claiming a mortgage interest deduction, you will need to itemize your deductions on Schedule A of Form 1040. This means that you will need to spend more time on tax preparation. However, if your itemized deductions, including your mortgage interest deduction, are less than your standard deduction, it may be more advantageous to take the standard deduction instead.
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Your mortgage insurance provider is a governmental unit
If your mortgage insurance provider is a governmental unit, you do not need to report mortgage interest on Form 1098. For example, interest received as housing assistance payments from the Department of Housing and Urban Development (HUD) on mortgages insured under Section 235 of the National Housing Act is not reportable. Similarly, mortgage insurance provided by the Department of Veterans Affairs and the Rural Housing Service is commonly referred to as a funding fee and guarantee fee, respectively, and is not reported on Form 1098.
However, if you have received at least $600 of mortgage interest during the year, you may need to report it on Form 1098, even if your mortgage insurance provider is a governmental unit. This form is used to report mortgage insurance premiums (MIP) of $600 or more received during the calendar year from an individual, including a sole proprietor, but only if Section 163(h)(3)(E) applies.
It is important to note that mortgage insurance premiums paid to the Federal Housing Administration (FHA) or private mortgage insurers may be tax-deductible. FHA mortgage insurance includes both upfront and monthly costs, and you can choose to pay the upfront fee out of pocket or roll it into your mortgage. Private mortgage insurance (PMI) is required if you take out a conventional loan with a down payment of less than 20% of the purchase price. PMI rates vary by down payment amount and credit score and are generally cheaper for borrowers with good credit.
If you are unsure whether your mortgage insurance provider is a governmental unit or need assistance in determining your tax obligations, it is recommended to consult a tax professional or refer to the latest instructions provided by the Internal Revenue Service (IRS) for Form 1098.
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Your mortgage insurance premiums are not listed in Box 5
If your mortgage insurance premiums are not listed in Box 5 of Form 1098, it could be because the law that would allow a deduction for mortgage insurance premiums for that year is still under review. This is likely why your lender did not report it on your 1098.
Form 1098 is used to report mortgage insurance premiums (MIP) of $600 or more received during the calendar year in the course of your trade or business from an individual, including a sole proprietor, but only if section 163(h)(3)(E) applies. You are required to report reimbursements of overpaid interest aggregating $600 or more to a payer on Form 1098. However, you are not required to report reimbursements of less than $600 unless you are otherwise required to file Form 1098.
Mortgage insurance provided by the Department of Veterans Affairs and the Rural Housing Service is commonly referred to as a funding fee and guarantee fee, respectively. Regulations section 1.163-11 applies to prepaid qualified mortgage insurance premiums paid or accrued on or after January 1, 2011, and provided by the Federal Housing Administration or private mortgage insurers. If you are unsure about the amount of mortgage insurance you paid, it is recommended to contact your lender for clarification.
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You need to report reimbursements of overpaid interest
If you have overpaid interest on an adjustable rate mortgage or other mortgage in a prior year and you refund that overpayment, you may have to file Form 1098 to report the refund. You are required to report reimbursements of overpaid interest aggregating $600 or more to a payer of record on Form 1098. You are not required to report reimbursements of overpaid interest aggregating less than $600 unless you are otherwise required to file Form 1098. That is, if you did not receive at least $600 of mortgage interest during the year of reimbursement from the person to whom you made the reimbursement, you are not required to file Form 1098 merely to report a reimbursement of less than $600. However, you may report any reimbursement of overpaid interest that you are not otherwise required to report, but if you do, you are subject to the rules in these instructions. The reimbursement must be reported on Form 1098 for the year in which the reimbursement is made.
Interest received during the current year that will properly accrue in full by January 15 of the following year may be considered received in the current year and is reportable on Form 1098 for the current year. However, if any part of an interest payment accrues after January 15, then only the amount that accrues by December 31 of the current year is reportable on Form 1098 for the current year. For example, if you receive a payment of interest that accrues for the period December 20 through January 20, you cannot report any of the interest that accrues after December 31 for the current year. You must report the interest that accrues after December 31 on Form 1098 for the following year.
The IRS charges underpayment interest when you don't pay your tax, penalties, additions to tax or interest by the due date. The underpayment interest applies even if you file an extension. If you pay more tax than you owe, the IRS pays interest on the overpayment amount. Underpayment and overpayment interest rates vary and may change quarterly. Changes don't affect the interest rate charged for prior quarters or years. Interest will continue to accrue daily on any amount not paid, including on both penalties and interest. If you're able to reduce the amount of tax or penalties you owe by filing an amended return or qualifying for penalty relief, the IRS will automatically reduce the related interest.
To dispute interest due to an unreasonable error or IRS delay, submit Form 843, Claim for Refund and Request for Abatement, or send a signed letter requesting that the IRS reduce or adjust the overcharged interest. In general, the IRS pays interest on the amount you overpay starting from the later of two dates: when the overpayment was created or 45 days before the date of the refund. The IRS stops paying interest on overpayments on the date of the refund or when the overpayment is offset to an outstanding liability.
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Frequently asked questions
The law that would allow a deduction for mortgage insurance premiums is still under review, which is why your lender did not report it on your 1098.
If you don't know how much mortgage insurance you paid, you should contact your lender.
You are required to report reimbursements of overpaid interest aggregating $600 or more to a payer of record on Form 1098. You do not need to report reimbursements of less than $600 unless you are otherwise required to file Form 1098.
Mortgage insurance premiums can be provided by the Federal Housing Administration or private mortgage insurers. Mortgage insurance is any obligation secured by real property, which is land and generally anything built on it, growing on it, or attached to the land.
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