U.S. · Tax forms
Form 1098 box 6 Points paid.
The five conditions a charge must meet, and the loans whose points never appear in box 6.
Box 6 shows points the borrower paid on the purchase of their principal residence, reported for the calendar year of closing. A charge only counts if it meets all five IRS conditions below. Points on refinances, home equity loans, second homes and home improvement loans are excluded.
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Result
Conditions for points reportable in box 6
| Condition | Short name | What the IRS instructions say |
|---|---|---|
| 1 | Designated as points | Clearly designated on the Settlement Statement (Form HUD-1) or HUD Closing Disclosure as points, for example a loan origination fee, loan discount, discount points or points (including amounts for VA and FHA loans). |
| 2 | Percentage of principal | Computed as a percentage of the stated principal loan amount. |
| 3 | Area practice | Charged under an established business practice of charging points in the area where the loan was issued, and not above the amount generally charged there. |
| 4 | Principal residence purchase | Paid for the acquisition of the payer of record’s principal residence, with the loan secured by that residence. The lender may rely on a signed written statement from the borrower that the proceeds are for that purchase. |
| 5 | Paid directly | Paid directly by the payer of record: with funds not borrowed from the lender for this purpose (down payment, escrow deposits, earnest money applied at closing), or paid by the seller on the borrower’s behalf. |
When points are reported at all
The lender must report points if the points plus other interest on the mortgage are $600 or more. The IRS example: a borrower pays $300 of points and $300 of other mortgage interest, so the lender has received $600 and must file Form 1098. The total points are reported for the calendar year of closing, regardless of the accounting method used to report points for federal income tax purposes.
What is not reported as points
The instructions list amounts that are not reported as points in box 6: loans to improve a principal residence; loans for a second home, vacation, investment or business property; home equity or line of credit loans, even if secured by the principal residence; refinancing; charges that stand in for items the Form HUD-1 states separately, such as appraisal, inspection, title and attorney fees and property taxes; and points allocable to principal above the amount treated as acquisition indebtedness, which generally cannot exceed $750,000. Construction loans have their own, similar conditions.
Worked example
Priya buys her home with a $250,000 loan and the Closing Disclosure lists "discount points" of $2,500 (1 percent of principal), in line with area practice. She paid it from her own funds at closing. All five conditions are met, so $2,500 appears in box 6. Her cousin Leo refinances the same year and pays $2,000 of points: that is a refinance, so none of it appears in box 6. Names and amounts are made up.
More from this set
Related pages: 1098 Box 10, 1098 Box 2, 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): Points, Reportable points, Exceptions, Construction loans, and box 6. 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 6 on Form 1098?
Points paid on the purchase of the payer of record’s principal residence, reported for the calendar year of closing.
Are all points reported in box 6?
No. A charge must be designated as points, computed as a percentage of principal, in line with area practice, paid for buying the principal residence, and paid directly by the borrower or the seller on the borrower’s behalf.
Are refinance points in box 6?
No. The instructions list refinancing, home equity and line of credit loans, home improvement loans and second-home loans among the exceptions.
Does a lender have to file if the interest is small?
A lender must report points if the points plus other interest on the mortgage are $600 or more. In the IRS example, $300 of points plus $300 of interest meets that.
Why is a seller-paid point in my box 6?
The instructions treat points a seller pays to the interest recipient on the borrower’s behalf as paid directly by the borrower, so they can be reported in box 6.
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.