U.S. · Tax forms
Form 1098 box 2 Outstanding principal.
The balance date depends on whether the loan was originated, acquired or already in place on January 1.
Box 2 is the outstanding principal on the mortgage as of January 1 of the year. If the lender originated the mortgage that year, it enters the principal as of the origination date. If the lender acquired the mortgage that year, it enters the principal as of the acquisition date.
Look it up
Result
Which date box 2 uses
| Situation | Box 2 amount as of | Related box |
|---|---|---|
| Loan already open on January 1 | January 1 of the current year | Box 3 shows the original origination date. |
| Lender originated the loan this year | The date of origination | Box 3 shows that origination date. |
| Lender acquired the loan this year | The date of acquisition | Box 11 shows the acquisition date; box 3 still shows the date the original lender originated it. |
| Origination date (box 3) | Not a balance | The date the mortgage originated with the original lender. If the filer acquired the mortgage, it does not enter its acquisition date here. |
What box 2 is not
Box 2 is a balance on one date. It is not the original loan amount for an older loan, not the balance at year end, and not the amount you paid during the year. The interest received during the year is in box 1.
Reading it with boxes 3 and 11
Box 3 is the origination date, and it is the date the mortgage originated with the original lender even if the filer bought the loan later. Box 11 holds the acquisition date and is filled in only if the filer acquired the mortgage in the calendar year. Together they tell you which date the box 2 balance was struck on.
Worked example
Dana closed on a $300,000 loan on March 14. Her lender originated the loan, so box 2 shows $300,000 (the principal as of origination) and box 3 shows March 14. In the following year the same Form 1098 would show the balance as of January 1, for example $297,100, since the loan was open on that date. The numbers are made up.
More from this set
Related pages: 1098 Box 10, 1098 Box 6, 1098 Box 4, 1098 Box 5. The 1099-R box 7 lookup and W-2 box 12 lookup cover the same kind of question for those forms.
Sources
- Instructions for Form 1098 (Mortgage Interest Statement) (page header shows Rev. 12/2026; it says to use the April 2025 revision of Form 1098 for 2026 information): Box 2 (Outstanding Mortgage Principal), box 3 (Mortgage Origination Date), box 11 (Mortgage Acquisition Date). Read November 2, 2026.
IRS instructions as read on the date above; thresholds and revisions change. Names and amounts in worked examples are made up.
Frequently asked questions
What is box 2 on Form 1098?
Box 2 is the outstanding mortgage principal. It is stated as of January 1 of the year, unless the loan was originated or acquired that year.
Is box 2 my balance at the end of the year?
No. The instructions say January 1, or the origination or acquisition date for a loan that started or was bought that year. It is not a year-end balance.
What if my loan started this year?
The lender enters the mortgage principal as of the date of origination.
What if my loan was sold to a new lender?
The lender that acquired the mortgage that year enters the outstanding principal as of the acquisition date. Box 11 shows the acquisition date, and box 3 still shows the original lender’s origination date.
Where is the interest I paid?
In box 1, which reports interest (not including points) received from the borrower during the calendar year.
Not tax advice
This page summarizes IRS instructions, which are written mostly for the people who file the form, and is not tax, legal or financial advice. The payer, a CPA or an enrolled agent can confirm what a box means for your return. Everything runs in your browser; nothing you enter is sent anywhere.