Every apartment dweller has heard they are wasting their money paying rent, and that the benefits of home ownership extend far beyond the investment potential. Owning your own home also has tax benefits and ramifications. Be well informed about your requirements as a home owner before jumping in with both feet!
A 1098 is a form to report interest paid to a lender throughout the year. The items listed on this form include interest paid on your mortgage, points paid at the time of the purchase, some mortgage insurance items, and any reimbursements for overpayment you may have received.
This form must be filed for any interest over $600, and it must be filed whether or not interest can be used as a deduction. If multiple mortgages secure a property, a different form must be filed for each mortgage. As always, there will penalties for not filing these forms. All interest paid to a lender via a borrower must be filed by the normal tax deadlines. The only exceptions to filing the 1098 come when the interest is paid from a corporation, trust, or an estate.
Education is paramount for success in the world today. Fret not, your tuition payments are not all in vain. Another common form is the 1098-T. The 1098-T is used to report tuition paid to a college, university, or vocational school by a student. The student may then use the 1098-T to report tuition paid for possible deductions and educational tax credits.
Any eligible educational institution must file a 1098-T for each student from whom they receive tuition. The form need not be filed for non-credit courses, scholarship students, or non-resident students. This form must also be filed by the standard IRS deadlines or face penalties.
These two forms and more can be e-filed at your convenience by Online File Taxes! Visit our website for more information about the many other forms we can easily and quickly e-file for you!