Hey There, 2016 1098. You look Different!

As the years go by, things change.  And with change comes new learning experiences and getting used to new things.  The 2016 1098 is basically the same form, with just a few key changes to take note;

  • Box 2 Outstanding mortgage principal as of 1/1/2016 – please report the outstanding  mortgage principal on the 1098.
  • Box 7 Is address of property securing mortgage same as Payer’s/Borrower’s address? – this is a checkbox.  Check the box if the answer is Y and skip box 8. If the answer is no, then leave the box unchecked and fill in box 8.
  • Box 8 Address of property securing mortgage – Only fill this in if the check box in box 7 is left blank.

Something else that is very important to note about Form 1098 is Box 4 Refund of overpaid interest.  Many banks (Lender’s) feel this should be a negative number because it is something that is being refunded to the Borrower.  However,  the IRS will not except the number as a negative and must be sent as a positive number.  In all of my years working at E-File Magic this is the number one error I see with form 1098.

Please remember we are here to help! Please call or email us if you have any questions!

 

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