End of Year FAQs - 2014 EOY Statement Types 1098 Statement:
The 1098 Statement provides mortgage interest paid within 2014 above $600 as required by IRS guidelines.
1098 Statements also include:
- Points paid on principal residence
- Refund of overpaid interest
- Mortgage insurance premiums paid
- Escrow disbursements
- Late charges paid
- Prepayment penalties paid
Acquisition or abandonment of secured property, such as property sold at a foreclosure sale. 1099-INT:
Lists any interest ($10 or more) earned on funds held in an escrow/impound account. 1099-C:
Lists cancellation of debt, such as debt cancelled in connection with a short sale of a secured property.
Statements will be mailed out on or before January 31, 2015.
In 2014, my loan was with a different servicer and then was transferred to RCS. Who is going to send me a 1098 Form?
If the loan was serviced by another servicer during 2014 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 2014.
I paid a prepayment penalty when I paid off my loan in 2014. 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 2014 EOY Statement sooner than RCS is able to provide it? May I just use the "interest paid" information that appeared in my last statement for 2014?
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.
Are the property taxes paid through my escrow account included in the EOY statement?
Yes, if the real estate taxes were paid through an established escrow account in 2014.
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 2014 so I can claim a larger deduction of interest paid for my 2014 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.
Will Mortgage Insurance be included in my 2014 deductions?
The IRS has implemented changes that affect how Mortgage Insurance is reported in 2014. RCS recommends you consult with your tax preparer regarding this matter.