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Taxes Question
DaMoonRulz
Mare ImbriumRegistered User regular
Mare ImbriumRegistered User regular
Came in here because I thought there was usually a tax thread.
Mrs Moon and I bought a house last year. We got a big thing of tax forms from the original lender and our w-2s so I thought we had everything, so I filed our taxes.
However, now US Bank is servicing the mortgage and yesterday we got a 1098 form for mortgage interest payments (?). Is this something I need to amend the return with? Can I amend the return at this point?
Mrs Moon and I bought a house last year. We got a big thing of tax forms from the original lender and our w-2s so I thought we had everything, so I filed our taxes.
However, now US Bank is servicing the mortgage and yesterday we got a 1098 form for mortgage interest payments (?). Is this something I need to amend the return with? Can I amend the return at this point?
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Did you put mortgage interest on the one you sent? Was the amount demonstrably different? If the changeover happened in December/January, they may be obligated to send duplicating information.
Do some math, figure out if you can itemize, if you can't, there's little point in itemizing to include the 1098. I don't think you'll get hit with any fines for not including it with your forms though, but I may be wrong there.
You absolutely should amend your return because you probably left several hundred/thousand dollars on the table
we also talk about other random shit and clown upon each other
yes, you need to amend your return regardless, because even if you don't end up benefiting this year, it will look weird on your return for 2016.
Oh is it above the line? Shit that's pretty sweet.
Edit: how sure are you guys on that : http://www.geeksonfinance.com/about_7481772_mortgage-interest-above-line-deduction.html
and when I try to enter something like medical expenses, it says dont do it because i'll lose the standard deduction
so I assume it's above line
however, I believe mortgage INSURANCE is a deduction, and not above-line. both numbers are on the same form
we also talk about other random shit and clown upon each other
You can deduct,: mortgage interest, Local property taxes paid*, mortgage insurance premiums.
http://thefinancebuff.com/tax-deductions-above-the-line-standard-itemized-and-miscellaneous.html
*this is somewhat tricky because if you closed say 7/1 half the years taxes were covered by the sellers during the closing.
The change in mortgage interest and real estate taxes might make you benefit from itemizing instead of taking the standard deduction. Worth taking a look at what it'd have been.
Not to intentionally jump on you, but since others read the thread, I thought I would correct this. I do taxes for a living, and in my experience I can't imagine the IRS batting an eye at mortgage interest/property tax showing up in 2016 without having been on 2015. They couldn't care less if people don't take deductions/credits they're entitled too, only the other way around. So I wouldn't bother amending a return unless there's an actual decrease in your tax (and it's worth your time), or an increase in your tax (but you're correcting a mistake).
For starters, did you take the standard deduction? Assuming you and Mrs. Moon filed jointly, then this is $12,600.
If you did take the standard deduction, then look at your Form 1098 that you received. Box 1 indicates the amount of mortgage interest you paid. Box 2 indicates any points you paid on the mortgage. Box 3 is probably $0. Box 4 is probably also $0 for you. If your mortgage includes escrow, Box 5 may indicate the property taxes you paid out of the escrow payments. If you mortgage does not have escrow, then go fetch the property tax bills you paid.
Also, bust out the HUD form you got when you financed the house. This should also indicate any real estate (aka, property) taxes you paid when you bought the house.
Fetch your W-2s, and add up Box 17 on all of them.
Now, add up the amounts from Boxes 1, 5, your property tax payments, and the state taxes you paid out of our W-2. If this amount is more than $12,600, then you should absolutely file a 1040X (amended return) so you can itemize instead of taking the standard deduction. The H&R block program you used should do this.
If you already did take all of this stuff into account (likely if your dad has H&R Block Deluxe and you answered all of the questions), then look at the form you filed. Is there a Schedule A? Then you already itemized. Lines 10-15 on Schedule A deal entirely with home mortgage interest. If the amount in Box 10 is not equal to the amounts in boxes 1 and 2 on your Form 1098, then you also need to amend your return to those figures.
If you did not itemize originally, and your mortgage interest, property tax, and state tax payments did not exceed $12,600 then you wouldn't gain anything by itemizing and you're okay.
On the other hand, sometimes there are points (origination charges) and/or a partial month's worth of mortgage interest on page 2 of the HUD that don't get accounted for on a 1098, and you can certainly add those.
It said we could do a standard deduction of 12,600 or an itemized deduction would only be 3,200ish.