Information To 1098 Mortgage Curiosity Statements
Now that we’ve gone over the fundamentals relating to your mortgage curiosity assertion, we’d prefer to wind this up by answering a number of of our shoppers’ most typical questions.
Why Did I Obtain A Corrected 1098 Assertion?
If we later decide any data in your 1098 is inaccurate as a result of an error or up to date steerage from the IRS, we’ll challenge a corrected assertion. It’s price noting that if the error is simply on web page 2 (the underside half of your 1098), a correction gained’t be despatched. It is a shopper copy and never reported to the IRS.
For extra data on what this implies in your taxes, we suggest consulting the IRS or a tax skilled.
I Pay The Mortgage Curiosity. Can I Declare The Deduction Even Although I’m Not Listed On The Mortgage?
You may take the deduction so long as one other particular person, on the mortgage or in any other case, isn’t making a declare to the identical deduction. When you’ve got any questions on the perfect factor to do in your scenario, we suggest talking with a tax advisor.
I Paid Extra Towards Curiosity In One other Month Than The Assertion Is Displaying. Why Is That?
Every tax 12 months, you’ll be able to solely deduct mortgage curiosity for 13 months’ price of funds, together with January of the next 12 months. The reasoning for that is that mortgage curiosity is paid someday after the precise curiosity cost. January is included as a result of the curiosity was accrued in December of the earlier 12 months.
I Have A VA Mortgage And Don’t Pay Mortgage Insurance coverage. What’s The Quantity Included In Field 5?
Within the eyes of the IRS, this funding price serves as a mortgage insurance coverage fee.
Field 5 will embody the costs for both your full VA funding price quantity should you paid up entrance or the quantity that you just paid up to now 12 months should you construct it into your steadiness.
Can I Prepay My Taxes?
Please see the next assertion from Rocket Mortgage® CEO Jay Farner:
“Rocket Mortgage has at all times paid property taxes by calendar 12 months finish (for shoppers whose loans we service and keep tax escrow accounts) if the taxes are assessed and payable by December 31.
“This coverage permits our shoppers to learn from any tax benefits that paying property taxes by calendar 12 months finish could achieve them.
“Within the scenario the place a shopper’s property taxes usually are not but assessed and/or billed, we’d not ‘prepay’ property taxes because the quantity due can be unknown. That is our coverage whatever the time of 12 months.
“If a Rocket Mortgage shopper elects to pay unassessed and unbilled future taxes, Rocket Mortgage will proceed to gather month-to-month escrow deposits and make any unpaid property tax funds as they arrive due. If the shopper’s prepayment of their property taxes has brought on there to be extra funds of their escrow account, the shopper will obtain a refund of any surplus of funds after an escrow evaluation is carried out.
“Rocket Mortgage strongly encourages its shoppers to seek the advice of with a tax skilled earlier than making any ‘timing’ selections associated to the fee of property taxes that would lead to substantial variations of general earnings taxes owed and/or the timing of such funds, particularly in a 12 months, akin to 2017, when vital modifications to the tax code have taken place.”
I’m A Rocket Mortgage Consumer. What Quantity Can I Name To Get Extra Info?
You may attain us at our 1098 hotline. That quantity is (877) 457-1158.
What Quantity Can I Name To Confirm This Info With The IRS?
People can name their native IRS workplace or (800) 829-1040.
I Don’t Have A Tax Advisor – Who Can I Contact?
People can attain out to the IRS at (800) 829-1040, IRS.gov, or your native IRS workplace. Moreover, your lawyer or any tax skilled in your native space is probably going in a position to help you with such questions as effectively.
Please observe that none of this data needs to be construed as tax recommendation. When you’re in search of tax help, please attain out to your tax skilled or the IRS.