Let’s breakdown your year-end statement
Ahh… the end of the year. A time for celebrations, resolutions and mortgage statements.
If, “Wait. What statement?” was your first thought, have no fear! You’re not alone. We’re here to give you the full rundown on what to expect from your year-end statement.
Here’s everything you need to know:
What it is
A year-end statement, (also known as IRS tax form 1098) is essentially a status update on a mortgage. It’s a document that is sent out and shows how much mortgage interest, mortgage points, and property taxes have been paid by the borrower that year. It also includes how much the borrower has left on their mortgage. You can find a sample form here.
When you get it
It’s likely you’ll get two copies of your 1098 form if you obtained a new mortgage or your mortgage servicing was transferred that year. One comes from your mortgage company and the other comes from your mortgage company’s servicing company. While each servicer has their own delivery method, all are required to be sent out no later than January 31 of each year. For example, 2019’s forms will be sent out by January 31, 2020. Some companies may even offer digital copies of your statement.
How to use it
You can claim the mortgage interest you’ve spent on your home for a deduction when you file your federal income taxes.
Here is the catch: to be able to claim the deduction, you’ll need to itemize your taxes instead of taking a standard deduction. When you do this, you may be able to claim a tax break on up to two homes in which you’ve paid the lender $600 or more.
Where to go for more info
If you’re looking to learn more or have any specific questions about your year-end statement. Don’t hesitate to reach out to your loan servicer to help you track down any info needed.
As always, you can also find more mortgage info at: www.GRArate.com/articles
** Guaranteed Rate Affinity does not provide tax advice. Please contact your tax adviser with any tax related questions.