Updated October 17, 2026. Quick answer: Box 6 of Form 1098 shows points paid this year for the purchase of your principal residence that the lender is required to report. The borrower copy warns that not all points are reportable, so a blank box does not mean you paid no points. Seller-paid points that appear here must be subtracted from the basis of your home.
Related reading on this site: IRS Publication 530.
Related reading on this site: IRS Publication 936.
Schedule A and Schedule B (Form 1040) for 2025, read line by line: Schedule A line 8a and Schedule A lines 8b, 8c and 8e.
What box 6 reports
The borrower copy of the form explains the box this way: “Not all points are reportable to you.” “Box 6 shows points you or the seller paid this year for the purchase of your principal residence that are required to be reported to you.”
The lender side is shorter: “Enter points paid on the purchase of the payer of record’s principal residence.” The phrase “payer of record” is the lender’s term for the principal borrower on its books. This page covers box 6 only. The full statement is in the Form 1098 boxes guide, and the overview is the Form 1098 overview. Box 1, where the ordinary interest sits, is explained on the box 1 page.
The conditions a lender must meet to report points
The filer instructions give a list: “Report on Form 1098 points that meet all the following conditions.” The list has five numbered conditions, summarised in the table. All of them must be met.
| Condition (summary) | Filer instruction |
|---|---|
| Clearly labelled as points on the closing paperwork | “They are clearly designated on the Settlement Statement (Form HUD-1) or HUD Closing Disclosure as points” |
| Figured as a share of the loan | “They are computed as a percentage of the stated principal loan amount.” |
| Normal for the area | “They are charged under an established business practice of charging points in the area where the loan was issued and do not exceed the amount generally charged in that area.” |
| For buying your main home | “They are paid for the acquisition of the payer of record’s principal residence, and the loan is secured by that residence.” |
| Paid directly by you or on your behalf by the seller | “They are paid directly by the payer of record.” |
The fifth condition has two branches. One is that you provide funds that were not borrowed from the lender for this purpose. The other is stated this way: “Points paid by the seller to the interest recipient on behalf of the payer of record are treated as paid to the payer of record and then paid directly by the payer of record to the interest recipient.” That is why seller-paid points can land in your box 6. The instructions add: “Report the total points on Form 1098 for the calendar year of closing regardless of the accounting method used to report points for federal income tax purposes.”
What the lender leaves out of box 6
The same instructions list amounts that are not reported as points: “Do not report as points on Form 1098 amounts paid:”
- “For loans to improve a principal residence”
- “For a home equity or line of credit loan, even if secured by the principal residence”
- “For refinancing”
- “In lieu of items ordinarily stated separately on the Form HUD-1, such as appraisal fees, inspection fees, title fees, attorney fees, and property taxes”
The list continues: “For loans to purchase or improve a residence that is not the payer of record’s principal residence, such as a second home, vacation, investment, or trade or business property”. If you refinanced, took out a home equity loan or bought a second home, an empty box 6 matches those exclusions even though you paid points on that loan.
Seller-paid points and your home’s basis
The borrower copy gives the rule in one sentence: “Generally, these points are fully deductible in the year paid, but you must subtract seller-paid points from the basis of your residence.”
Publication 936 repeats it from the buyer’s side: “The buyer reduces the basis of the home by the amount of the seller -paid points and treats the points as if the buyer had paid them.” “If any of those tests aren’t met, the buyer deducts the points over the life of the loan.” The publication points to its sources on basis: “If you need information about the basis of your home, see Pub. 523 or Pub. 530.”
Points that are not in box 6
The form is clear that box 6 is not the full picture: “Other points not reported in box 6 may also be deductible.” “See Pub. 936 to figure the amount you can deduct.”
Publication 936 explains the other direction too: “As a general rule, Form 1098 will include only points that you can fully deduct in the year paid.” “However, it may report points that you can’t deduct”. And “certain points not included on Form 1098 may also be deductible, either in the year paid or over the life of the loan”. Where the deduction is claimed is covered on the Schedule A page, and the limits that interact with itemizing are on the SALT cap page.
Edition and box numbers
The primary read for this page is Form 1098 (Rev. April 2025), including its Instructions for Payer/Borrower on the borrower copy, together with the Instructions for Form 1098 (Rev. April 2025) and Publication 936 for 2025 returns. The Instructions for Form 1098 (Rev. December 2026) were the current instructions irs.gov served on 2026-10-17 and were compared line by line. The form copy served that day still reads “Form 1098 (Rev. 4-2025)”. Box 6 is box 6 on both editions. Comparing the box 6 instruction and the Reportable points and Exceptions text in the April 2025 and December 2026 instructions line by line, the wording is the same, and the borrower copy of the form is unchanged. Check the revision and the calendar year printed on the statement you received.
Common mistakes
- Assuming a blank box 6 means no points were paid. The form says “Not all points are reportable to you.”
- Forgetting seller-paid points in the home’s records. The borrower copy says you “must subtract seller-paid points from the basis of your residence”.
- Using only box 6 when Publication 936 covers more. The form says “Other points not reported in box 6 may also be deductible.”
Related: Form 1098 overview, Schedule A (Form 1040), SALT cap 2026, and home sales and capital gains.
Sources
- Form 1098 (Rev. 4-2025) with Instructions for Payer/Borrower: IRS archived PDF (irs.gov)
- Form 1098 as served by irs.gov on 2026-10-17, with Instructions for Payer/Borrower: https://www.irs.gov/pub/irs-pdf/f1098.pdf
- Instructions for Form 1098 (Rev. April 2025): IRS archived PDF (irs.gov)
- Instructions for Form 1098 (Rev. December 2026): https://www.irs.gov/pub/irs-pdf/i1098.pdf
- Publication 936, Home Mortgage Interest Deduction (for 2025 returns): https://www.irs.gov/pub/irs-pdf/p936.pdf
Read from the IRS documents linked above on October 17, 2026. General information, not tax advice. Your own facts decide the outcome, and a preparer, the account provider or the IRS is the right place to confirm anything consequential.