Mortgage insurance premium not on 1098

[jklcpa]

New client's 1098 shows this paid out of escrow but not in the actual box on the 1098.  IRS page says the corrections were supposed to be out by 3/15, and the corrected forms filed with IRS by the due date of returns. 

Has anyone here taken the deduction without having the corrected form?  If you reported it, did you attach the 1098 or any other explanation?

 

[Lion EA]

I had clients that received letters from their banks with the mortgage insurance premium amounts instead of corrected Forms 1098.  I can see clients ignoring the letters.

[Abby Normal]

10 hours ago, jklcpa said:

Has anyone here taken the deduction without having the corrected form?  If you reported it, did you attach the 1098 or any other explanation

Yes.

No.

[BulldogTom]

2 hours ago, Abby Normal said:

Yes.

No.

Me too.

Tom
Modesto, CA

[ILLMAS]

PMI was extended at the last minute, some of my clients received a corrected 1098.

[Cathy]

The original dates IRS put out there were all estimates.  The actual date of the "Extender bill" was signed on 2/9/18.  Then it was several days after that when IRS acknowledged the PMI was deductible for 2017.  I immediately started using the PMI when the client brought in a statement from the bank (or called the bank from my office) giving accurate figures.  The few returns that were filed prior to the Extenders bill will be amended after April 17, 2017.  Am I concerned that IRS might be confused as to why the PMI was included on a return so soon after they announced the inclusion of it...?..no, and I see no need to worry as they of all people should understand this rollercoaster tax season.  We once had the same thing happen, and I followed the same procedure with the PMI and haven't heard a word nor do I expect to.

And, to answer your last question, Judy, nothing was attached to my returns in regard to the PMI.  I wouldn't dare write anything myself as I'm too afraid I would go off on a tangent for Congress signing retroactive laws AFTER TAX SEASON HAS STARTED!  Whatever happened to the good ole days when the laws were passed much earlier in the year thur IRS had time to digest them and issue their rules and regulations BEFORE tax season and not DURING it!

Hope everyone has a joyous and blessed Easter!

Cathy

 

 

[Catherine]

Many of my clients received letters.  A few received corrected 1098's - some of the "corrections" were the exact same form with the amount missing, plus the letter.... go figure.

[Max W]

This could cause some headaches down the road as the MIP info is transmitted to the IRS.  If the return doesn't match, there is sure to be a CP2000 in someones' future.

[ILLMAS]

5 hours ago, Max W said:

This could cause some headaches down the road as the MIP info is transmitted to the IRS.  If the return doesn't match, there is sure to be a CP2000 in someones' future.

I was thinking the same thing at first, then I remember the deduction is limited/reduced by AGI and most of the times client don’t get any benefit.