We hold the mortgage for our daughters home, she pays us P&I and we give her a 1098. How do we file our end of the 1098 with the IRS for the interest income we had?

[terry71]

I heard something about a form 1096 but it was confusing.

[Vanessa A]

Yes, you will need to send form 1096 along with the 1098 to the IRS to report the interest income you received from your daughter. 

You will need to print and mail this form, along with a copy of the 1098, to the IRS at the address listed in the instruction section of the form based on the state you live in.  

When you fill out form 1096, you will be the filer. You will not need to enter the EIN in box 1, just your social security number in box 2.  Seeing that this was a mortgage, box 4 also would not be relevant to you so you will leave this blank. 

[terry71]

Thank you, exactly what I needed to know.