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2018-04-05 22:43:42
What to do if you got an amended 1098 from your mortgage provider

If you pay Mortgage Insurance Premiums on your home, you may need to file an amended tax return!
At the beginning of tax season this year you were not allowed to deduct mortgage insurance premiums that you paid on your home.  That tax deduction expired in 2016. However, in the middle of February, 2018, Congress changed the law and allowed PMI (or Personal Mortgage Insurance) to be reinstated as a deduction for certain taxpayers, effective retroactively to 2017.
This means that if you already had already filed your tax return, it may be in your benefit to have the tax return amended to include the PMI that you paid.
Some mortgage companies included the amounts you paid in PMI on their original statements that were sent out in January.  Other mortgage companies have now issued corrected statements showing the PMI paid.
If you pay PMI you should examine your tax return to see if it would benefit you to file an amendment.
Here are a few Q&As to clarify the most common questions about the 1098:

Q. What is an amended 1098 form?

A. An amended 1098 form is just a corrected statement sent out by the mortgage company to show the full amount of PMI you may have paid.

Q. Why did I get one?
A. At the beginning of tax season the mortgage companies were not required to report PMI paid. However, congress changed the law in February and now the mortgage companies need to report this to you.
Q.What should I do with it?
A. You should examine your tax return and see if it would be beneficial to you to amend the tax return to include the PMI you paid. 
Q. What if I already filed my taxes?
A. If you want to include the PMI deduction on your tax return you will need to file an amendment. 
Q. Do I HAVE to file an amended return?
A. No.  You are not required to file.  And for many people the additional PMI that was paid will not make any difference on their return and they will not want to file an amended return.
Q. Is it worth my time?
A. It might be! For some people they can save a lot of money by deducting PMI.  For others it makes no difference at all. 
Q. Does it up my risk of being audited to file amended returns?
A. No, not necessarily.  However, unless the result is going to give you a significant amount of money back, I probably wouldn't amend the return.
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