Amended 1098s are due to borrowers by March 15, 2018. IRS has finally removed the warning that has been displayed on the agency’s 1098-Mortgage Interest web page since Feb. 9, which stated that their information was not up to date. This warning has been replaced with “New Developments” which include:
“The deduction for mortgage insurance premiums (MIP) treated as qualified residence interest under IRC section 163(h)(3)(E)(iv) has been extended for amounts paid or accrued through Dec. 31, 2017. This deduction phases out ratably for taxpayers with adjusted gross income of $100,000 to $110,000. Lenders must report MIP received in 2017 in Box 5, in accordance with the 2017 Instructions for Form 1098. Lenders who have already filed Forms 1098 and did not include reportable MIP should file corrected Forms 1098, including the reportable amounts, by the due date for filing the returns. Lenders who furnished statements to borrowers that did not include MIP should furnish corrected statements by March 15, 2018.”
Additionally, the IRS has issued IR-2018-33 alerting taxpayers to the “three popular tax benefits retroactively renewed for 2017” that the IRS has now reprogrammed its processing systems to accept. The agency assures us that it has been working closely with the tax-preparation industry to ensure that their available software processes can now accommodate these new provisions.
Important for your members to know: If they have already filed their 2017 federal tax returns and now wish to claim one of these renewed benefits, they can do so by filing an amended return on Form 1040X. Amended returns cannot be filed electronically and can take up to 16 weeks to process.
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