The Internal Revenue Service has released Instructions for Form 1098 (Rev. December 2026). These instructions apply to tax year 2026 information returns filed in early 2027. The instructions reflect legislative changes from the One Big Beautiful Bill Act (OBBBA), signed July 4, 2025.
The notice that the $750,000 acquisition indebtedness limit was “set to expire” has been removed because OBBBA made this limit permanent. The Box 5 CAUTION directing filers to verify section 163(h)(3)(E) extension status was also removed because OBBBA made mortgage insurance premiums permanently deductible starting in 2026.
