Oops- Forgot My Mortgage

Today TaxMama hears from Al in Phoenix, AZ, who admits. “Last year I forgot to file one of my 1098 mortgage interest statements (OOPS!). Can I file it this year? If so,
How?”

Hi Al,

Do you mean that you forgot to take a deduction for mortgage interest that you paid?

Or that someone paid you and you forgot to send them a Form 1098?

I suspect it’s the first thing, isn’t it?

Nope. You don’t get to fix it this year. In fact, IRS matches up the Forms 1098 that are filed by mortgage with what you report on your tax return. If you report much more than the mortgage companies show, you will get a letter from IRS telling you to pay up!

Of course, if you didn’t report ALL your mortgage deductions, IRS won’t be rushing to tell you. In fact, you won’t hear from them at all.
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Here’s what you do. Since you didn’t deduct one of your mortgages last year, you’ll need to file an amended return. Redo the tax return. Print out the relevant pages (at least the first two pages of the 1040 and Schedule A). Write ‘AMENDED’ on all the pages.

Then print out the same forms on the original version of the return. Mark all these pages ‘ORIGINAL’.
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Place a filled-in Form 1040X on top of the whole thing. Send it in to IRS.

And ta-daaaa! You’ll get a refund.

Oh yes, do the same thing with your state return.
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There’s a refund due there, too.

And remember, you’ll find answers to questions about missing deductions and all kinds of tax issues, free.
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Where? Where else? At TaxMama.com

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