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End of Year FAQs - 2013

End of Year Statement Types
1098: The 1098 Statement provides mortgage interest paid during 2013 if greater than $600, as required by IRS guidelines.

1098 statements also include if applicable:
  • Points paid on purchase of a principal residence
  • Refund of overpaid interest
  • Mortgage insurance premiums paid
  • Escrow disbursements
  • Late charges paid
  • Prepayment penalties paid
*Please note that if your loan was serviced by RCS in prior years, the threshold for reporting interest paid on 1098 statements was changed to $600 for 2012 reporting in order to comply with IRS requirements. Amounts less than $600 are not reported.

1099-A: Acquisition or abandonment of secured property, such as property sold at a foreclosure sale.

1099-INT:(Applicable States Only) Reports as income any interest of $10 or more earned on funds held in an escrow/impound account.

1099-C: Reports cancellation of debt, such as debt cancelled in connection with a short sale of a secured property.

1099-M: Reports as income non-employee compensation payments, payments made to attorneys, or payments you received in connection with a lawsuit settlement aggregating $600 or more.

All statements will be mailed out on or before January 31st, 2014.

Frequently Asked Questions:

In 2013, my loan was with a different servicer and then was transferred to RCS. Who is going to send me a statement?
If the loan was serviced by another servicer during 2013, that servicer will be responsible for providing statements during the period of time they serviced the loan. RCS will provide statements for the period of time RCS serviced your loan within 2013.
I paid a prepayment penalty when I paid off my loan in 2013. Is this information disclosed on my 1098?
Yes, a prepayment penalty is considered interest. The interest amount reported on your 1098 includes the prepayment penalty if applicable..
I need my 2013 end of year statement sooner than RCS is able to provide it. Can I just use the "interest paid" information that appeared in my last statement for 2013?
The interest paid amount on the billing statement may not include all amounts paid. It is not recommended that you use this information for reporting. EOY amounts may be obtained through RCS’s automated telephone service by dialing 1-800-737-1192.
Are the property taxes paid through my escrow account included in the statement?
Yes, if the real estate taxes were paid through an established escrow account in 2013.
I don't have an escrow account on my loan, but RCS paid my property taxes. May I use the RCS payment as a deduction on my income tax return?
If RCS advanced funds to pay property taxes the amount of the taxes paid will not be included on your 1098 regardless of repayment status. The only taxes included on your 1098 statement are those disbursed through an established escrow account. RCS recommends that you consult with a tax preparer to determine if the advance RCS made for your property taxes is an allowable deduction.
May I pay extra payments to my loan before the end of 2013 so I can claim a larger deduction of interest paid for in 2013 tax return?
RCS recommends you consult with your tax preparer regarding this matter. The IRS may have some stipulations regarding the interest allowed for deduction when a loan is prepaid.

*The information RCS provides should not be considered tax advice. You should consult with a tax professional for tax counseling.

© 2014 Residential Credit Solutions, Inc. ™ All Rights Reserved. - NMLS No. 1514