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.
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