Changes to 1098 Reporting Mortgage Interest Statement - Date 5/18/16

Sep 19, 2026

Changes to 1098 Reporting Mortgage Interest Statement detail updated reporting requirements tied to the 2016 tax year for credit unions. The IRS added mortgage insurance premium reporting in box 5 for borrowers paying $600+ and expanded Form 1098 to include property address or description, outstanding mortgage principal as of January 1, 2016, and the mortgage origination date. The form size changes from 3-on-a-page to 2-on-a-page, with program changes identifying affected boxes and data sourcing rules.

LanguageEnglish

CategoryForms

FormatPDF

Pages3

Reading Time1 min

AccessFree to download

1098 Form Samples

1098 for 2015

NEW 1098 for 2016

Summary of Program Changes

Program changes and affected boxes

Data gathering rules for boxes 2, 3, 5, 7, 8, 9

Changes to 1098 Reporting Mortgage Interest Statement Date 5/18/16 Spec Writer: Karen Systems Affected: 􀀻 CU*BASE Project \# 42180 Programmer analysis needed. This project includes changes to reporting requirements for Form 1098: Mortgage Interest Statement required for the 2016 tax year. See below for detail. Changes to the 2016 Form 1098: Mortgage Interest Statement (from the NAFCU Compliance Blog) Written by Victoria Daka, Regulatory Compliance Counsel While credit unions complete tax reporting requirements for 2015, we thought it would be a good time to note that next year there will be changes to this process. A new law passed in July, 2015 included additional reporting requirements for credit unions that receive mortgage interest. Just to be clear, this will impact next year's reporting, as it applies to mortgage interest received in 2016. To meet this law's requirements, the Internal Revenue Service added two additional reporting requirements andresized the 2016 version of Form 1098. Credit unions will be required to report mortgage insurance premiums inbox 5. This still applies only where a borrower pays a credit union $600 or more in mortgage interest on any one mortgage during the calendar year. Second, credit unions must report the address or description of property securing the mortgage, the outstanding mortgage principal as of January 1, 2016, and the mortgage origination date. Additionally, Form 1098 has increased in size from a 3-to-a-page to a 2-to-a-page format. Below is a summary from the Form 1098's 2016 instructions on the additional requirements: Mortgage insurance premiums. Report mortgage insurance premiums paid of $600 or more in box 5. Reporting is required under section 6050H(h) . New reporting requirements. The Surface Transportation and Veterans Health Care Choice Improvement Act of 2015 contains new reporting requirements for recipients of mortgage interest. For forms 1098 issued to payers after December 31, 2016, you must report the address or description of property securing the mortgage, the outstanding mortgage principal as of January 1, 2016, and the mortgage origination date. Form resized. Due to the modification of reporting requirements by P. L. 114-41, sec. 2003, the official IRS Form 1098 has increased in size from a 3-to-a-page to a 2-to-a-page format, beginning with tax year 2016. The revised form can be found [at www.irs.gov/form1098](at www.irs.gov/form1098) .” The instructions for 2016 Form 1098 are available here. The revised form can be found here. Again, this is not for the 2015 tax year, but for any 1098 forms sent after December 31, 2016. Suggested content for the Release Summary (sales pitch, geared toward credit unions): Year-end tax reporting for Form 1098 Mortgage Interest Statement has been updated to include new mortgage loan information required by the IRS for the 2016 tax year. In addition, the form is re-sized to 2-on-a-page rather than 3-on-a-page. SHOW SAMPLE OF NEW FORM Contents 1098 Form Samples ...................................................................................................................................................2 1098 for 2015 .........................................................................................................................................................2 NEW 1098 for 2016 ................................................................................................................................................2 Summary of Program Changes ..................................................................................................................................3 1098 for 2015 NEW 1098 for 2016 The following program changes are anticipated with this project: 􀂆 Changes to the tax creation program and other changes (need programmer input) based on the added boxes listed below: | Box \# | Description | Gather Data From | | --- | --- | --- | | 2 | Out

FAQs

What key reporting changes apply to the 2016 Form 1098 Mortgage Interest Statement?

The IRS added reporting requirements including mortgage insurance premiums in box 5 (for $600+ mortgage interest), and additional fields for property address/description, outstanding mortgage principal as of January 1, 2016, and the mortgage origination date.

When are mortgage insurance premiums required to be reported in box 5?

Mortgage insurance premiums must be reported in box 5 when a borrower pays a credit union $600 or more in mortgage interest on any one mortgage during the calendar year.

How do boxes 7 and 8 determine the property address population?

Box 7 asks whether the property address securing the mortgage matches the payer/borrower address. If Box 7 is N, Box 8 is populated from the collateral record address; if Box 7 is Y, Box 8 is left blank.

Sep 19, 2026

Upload by Caleb Sterling