Question

What recourse do I have if I follow TT's guidance on combining amounts across multiple 1098's due to refinances and I get audited?

Forum|Forum|5 years ago
February 22, 2021
1 reply
0 views

Looking @ this article https://ttlc.intuit.com/community/loans/help/what-do-i-do-if-i-have-multiple-1098s-from-refinancing-my-home-debt/01/1897136

It makes me nervous that I am entering in information different than what it says on my 1098 forms.

J

JotikaT2

The IRS looks at your overall totals and ensures they match the total amounts as reported on your 1098 Forms. The only time they might question it is if the amounts reported on your income tax return do not match the totals from all of your 1098 Forms.

As long as your principal balance is below the limits and your loan is secured by your residence, you should be able to deduct the entire amount of your mortgage interest expense.

This would be an issue if your loan balance exceeds $375,000 or $750,000 if Married Filing Joint. If it exceeds this balance, your deduction will be reduced.

I recommend retaining your 1098 forms with your income tax returns. Should the taxing agencies request further proof, you will be able to provide them with the tax forms as evidence of your deduction.

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