FORM 1098 Mortgage Interest

Forum|Forum|4 years ago
February 15, 2022
1 reply
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Good morning,

I had recently submitted my tax return but weeks later I received a Form 1098 from my bank. I am sure if I have to report the interest amount on my tax refund? Do I amend it and add this? It's my first year having mortgage payment and was unsure if was already reported from the bank or if I also had to add it to my refund.

DanaB27

It depends if you have more Itemized Deductions than your Standard Deduction amount.

Possible Itemized Deductions are:

Medical and dental costs above and beyond 7.5% of your AGI
State, local, real estate, and personal property taxes ($10,000 limit)
Home mortgage interest (Form 1098)
Charitable donations and gifts

Standard deductions for 2021

Single - $12,550 add $1,700 if age 65 or older
Married Filing Separately - $12,550 add $1,350 if age 65 or older
Married Filing Jointly - $25,100 add $1,350 for each spouse age 65 or older
Head of Household - $18,800 add $1,700 if age 65 or older

If your Itemized Deductions are not more than the Standard Deductions then you do not have to amend your tax return.

If you are able to use the Itemized Deduction then you will want to amend your tax return with Form 1040-X after your original return has been processed. Please be aware that you can e-file your 2021 amended federal tax return, but most states require amendments to be printed and filed by mail. Please see How to amend a tax return for instructions (this will be updated once the 2021 Form 1040-X is ready).

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