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If you paid $600 or more of mortgage interest (including certain points) during the year on any one mortgage, you generally will receive a Form 1098, Mortgage Interest Statement, or a similar statement from the mortgage holder. You will receive the statement if you pay interest to a person (including a financial institution or cooperative housing corporation) in the course of that person’s trade or business. A governmental unit is a person for purposes of furnishing the statement.

The statement for each year should be sent to you by January 31 of the following year. A copy of this form will also be sent to the IRS.
The statement will show the total interest you paid during the year. If you purchased a main home during the year, it also will show the deductible points paid during the year, including seller-paid points. However, it should not show any interest that was paid for you by a goverment agency. As a general rule, Form 1098 will include As a general rule, Form 1098 will include paid. However, certain points not included on paid. However, certain points not included on year paid or over the life of the loan. See the earlier discussion of Points to determinate whether you can deduct points not shown on Form 1098.

If you prepaid interest in 2006 that accrued in full by January 15, 2007, this prepaid interest may be included in box 1 of Form 1098. However, you cannot deduct the prepaid amount for January 2007 in 2006. You will have to figure the interest that accrued for 2007 and subtract it from the amount in box 1. You will include the interest for January 2007 with other interest you pay for 2007.

If you received a refund of mortgage interest you overpaid in an earlier year, you generally will receive a Form 1098 showing the refund in box 3. S