clients and her mothers name is on the 1098 form. her mother name is first. her mothers ssn is on the form. can my client use the interest on her taxes. client pays mortgage?
HELP therrell123
HELP therrell123
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Yes. However, it is likely she will receive an automated IRS notice about it, because the 1098 does not show her Social Security Number. It is usually easy to respond to that notice, but you should warn the client about it so they don't panic when they get it. -
See TTB page 4-11 for a clear explanation:
Excerpt from TTB:
"Form 1098, Mortgage Interest Statement
Was Form 1098 issued in the taxpayer’s Social Security number?
Yes
• Report deductible mortgage interest on Schedule A, line 10.
• Attach an explanatory statement if the deductible amount and the amount reported on line 10 are not the same.
• If more than one person paid deductible mortgage interest (other than a spouse filing jointly), include amounts paid by each party on the statement.
No
• Report deductible mortgage interest on Schedule A, line 11.
• Include the name, identifying number, and address of the interest recipient in the space provided next to line 11.
• If another taxpayer (other than a spouse filing jointly) received Form 1098 for mortgage interest paid by the taxpayer, and for which the taxpayer is liable, attach a statement showing the name and address of that person."Always cite your source for support to defend your opinionComment
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