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Where e-filing information return forms comes full circle. We support 1099, 1098, W-2, and Affordable Care Act forms.

1098-T

1098 Tax Breaks You Probably Didn’t Know About

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Tax season can be tricky, especially when it comes to understanding all the different tax breaks available. Fortunately, there are plenty of tax breaks you may not know about that can help boost your refund. This article will explore how a 1098 tax break can help lower your taxable income and maximize your tax return. From student loan interest deductions to energy credits, these 1098 tax breaks offer great potential to save money and make filing taxes easier. 1098 Tax Breaks and Basic Info There are several different types of 1098 forms and they all serve to help individuals and businesses keep track of financial information that isn’t available on main income tax forms.  Here’s a glance at all the 1098 forms: 1098 (Mortgage Interest Statement) 1098-C (Contributions of Motor Vehicles, Boats, and Airplanes) 1098-E (Student Loan Interest Statement) 1098-F (Fines, Penalties, and Other Amounts) 1098-MA (Mortgage Assistance Payments) 1098-Q (Qualifying Longevity Annuity Contract Information) 1098-T (Tuition Statement) If you are looking for more information about how you could get a 1098 tax break and what each form is made for, read on! 1098 (Mortgage Interest Statement)  The true Form 1098 is one of the most common 1098s Americans receive each year. Mortgage companies are required to provide this form if an individual paid at least $600 in mortgage interest in the tax year in question. To be able to deduct this mortgage interest from your federal taxes, you must be the primary borrower on the loan, and also be active in making payments. If you want to deduct this interest, you will need to itemize your taxes (instead of taking the standard deduction) and use Form 1098 and a Schedule A form to deduct the personal part of mortgage interest. This form can also be used for reporting mortgage insurance premium payments and mortgage points payments. 1098-C (Contributions of Motor Vehicles, Boats, and Airplanes) This form is provided to those …

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FAQs About 1098s

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There are lots of different 1098s and we wanted to help you better understand them, so we’ve put together this guide of eFile360 resources and FAQs to help you grow your understanding. 1098s: The Basics 1098s are used when you are preparing your federal income taxes, and they describe the financial transactions you or your business made during a calendar year that could affect the filing of your tax return. There are seven different types of 1098 forms: 1098, 1098-E, 1098-T, 1098-C, 1098-F, 1098-MA, and 1098-Q. The most commonly used include the 1098, 1098-T, and 1098-C. For a complete list of these forms and a description of what each form is for, you can read our eFile360 blog article on that topic. To find out which forms efile360 can help you with, check out our supported forms page! How Do I Fill Out Form 1098? When you are filling out and filing your 1098s, you want to be sure you or the tax preparer you have chosen to assist you follows the IRS instructions, which you can find here. Will I Get Two 1098 Forms if I Refinance? Generally, you should expect to receive a single 1098 form per property per year. However, if you have refinanced any of your properties within the current tax year, you will receive two 1098s to reflect the changes instituted before and after the refinance. Filing Form 1098 allows you to report and deduct mortgage insurance premiums from your taxes every year. What Are Some Reasons I Would or Wouldn’t Receive a 1098-T? The 1098-T is issued by colleges and other educational institutions and is used to report how much a student (or their parents) paid in qualified tuition and expenses during the tax year. If you pay interest on student loans, you should get a 1098-T unless any of the following are true: A course you took did not offer academic credit You are a nonresident alien Your school waived your tuition or expenses, or they were fully covered by scholarships Or an employer or government agency …

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Types of 1098s and When to Use Them

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There are close to 1,000 forms related to federal income taxes, and seven different types of 1098 forms. There are seven different types of 1098 forms, each with a different purpose and importance. Let’s run through each form and what they’re used for. 1098 This form is a Mortgage Interest Statement. Your mortgage company will send you this form if you paid at least $600 in mortgage interest. 1098-C This form is for Contributions of Motor Vehicles, Boats, and Airplanes. If you donated a car, boat, or airplane worth more than $500 to a charity, you can take a charitable deduction for your contribution using this form. 1098-E This form is a Student Loan Interest Statement. Your lenders must give you this form if you paid at least $600 in qualified loan interest. 1098-F This form is for Fines, Penalties, and Other Amounts. If you paid any of the following, you’ll need to include them on this 1098 form: court-ordered fines, penalties, restitution, or remediation. However, these payments are not typically tax-deductible. 1098-MA This form is for Mortgage Assistance Payments. You’ll use this form when you received or paid any homeowner assistance payments through a state Housing Finance Agency. If you meet certain requirements, you could potentially deduct those payments. 1098-Q This form is for Qualifying Longevity Annuity Contract Information. This contract is from a certain type of retirement account, and the 1098-Q is where you’d report these payouts. 1098-T This form is a tuition statement. The recipient may claim education credits if he or she paid tuition to an eligible higher education institution, like a college or university. 1098 forms are given to anyone who has been engaged in any of the abovementioned financial transactions during the tax year. When you receive these forms, it’s always a good practice to make sure all information reported – even VINs, social security numbers, etc, - is correct before you file your …

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Acing Tax Form 1098-T

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The Internal Revenue Service (IRS) requires universities, colleges and post-secondary institutions who received “qualified educational expenses” to complete 1098-T tax forms for eligible students in the preceding tax year. As with other information returns, the form must be sent to the student by January 31. Complying with the reporting requirements for IRS form 1098-T has been a difficult process for many educational institutions. Over the past few years, the IRS has made changes to the tax form because of errors in reporting, specifically with Box 1 and Box 2. We’re going to provide an overview of those changes and solutions for being in compliance to avoid IRS penalties. Changes made to 1098-T In 2016, the IRS first introduced significant changes that required educational institutions to report payments received for qualified tuition and related expenses (QTRE) rather than the amount billed to students. Prior to these changes, educational institutions were allowed to provide students with payments received (Box 1) and the amount billed (Box 2) for QTRE.  The problem was that individual filers accidentally misreported their college expenses when benefits like scholarships were involved. Unfortunately, many people filing were not subtracting any scholarship amount from the total amount billed, leading to inaccurate reporting of funds the university received.  Now, colleges and universities are no longer able to report amounts billed for QTRE in Box 2 on 1098-T forms. They must report payments in Box 1. The IRS is now enforcing reporting changes and as Box 2 is grayed out. These changes mean universities must now redesign their system to start reporting via Box 1 only. Find out more on 1098 forms here. Recommendations for completing the form A lot of educational institutions have struggled with these changes due to in-house printing and reporting on legacy systems. To comply with IRS requirements, schools should know who qualifies for a 1098-T …

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