2018 Form 1098
Form 1098
2018 Mortgage Interest
Statement
Copy B
For Paye
Bo
owe
Department of the Treasury - Internal Revenue Service
The information in boxes
1through 9 is important
tax information and is
eing furnished to the
IRS. If you are required
to file a return, a
negligence penalty or
other sanction may be
imposed on you if the
IRS determines that an
underpayment of tax
esults because you
overstated a deduction
for this mortgage interest
or for these points,
eported in boxes 1 and
6; or because you didn't
eport the refund of
interest (box 4); or
ecause you
claimed a nondeductible
item.
OMB No XXXXXXXXXX
CORRECTED (if checked)
RECIPIENT'S/LENDER'S name, street address, city or town, state or
province, country, ZIP or foreign postal code, and telephone no.
RECIPIENT'S/LENDER'S TIN PAYER'S/BORROWER'S TIN
PAYER'S/BORROWER'S name
Street address (including apt. no.)
City or town, state or province, country, and ZIP or foreign postal code
9 Number of properties securing the
mortgage
10 Othe
Account number (see instructions)
*Caution: The amount shown may
not be fully deductible by you.
Limits based on the loan amount
and the cost and value of the
secured property may apply. Also,
you may only deduct interest to the
extent it was incu
ed by you,
actually paid by you, and not
eimbursed by another person.
1 Mortgage interest received from payer(s)
o
ower(s)*
$
2 Outstanding mortgage
principal as of 1/1/2018
$
3 Mortgage origination date
4 Refund of overpaid
interest
$
5 Mortgage insurance
premiums
6 Points paid on purchase of principal residence
$
$
XXXXXXXXXXIf address of property securing mortgage is the same
as PAYER'S/BORROWER'S address, the box is checked, or
the address or description is entered in box 8.
8 Address or description of property securing mortgage (see
instructions)
Form 1098 (Keep for your records) www.irs.gov/Form1098
Forever Loans Credit Union
Bo
1
11,875.00
241, XXXXXXXXXX/21/2017
X
Instructions for Paye
Bo
owe
A person (including a financial institution, a governmental unit, and a cooperative
housing corporation) who is engaged in a trade or business and, in the course of
such trade or business, received from you at least $600 of mortgage interest
(including certain points) on any one mortgage in the calendar year must furnish
this statement to you.
If you received this statement as the payer of record on a mortgage on which
there are other bo
owers, furnish each of the other bo
owers with information
about the proper distribution of amounts reported on this form. Each bo
ower is
entitled to deduct only the amount he or she paid and points paid by the seller
that represent his or her share of the amount allowable as a deduction. Each
o
ower may have to include in income a share of any amount reported in box 4.
If your mortgage payments were subsidized by a government agency, you
may not be able to deduct the amount of the subsidy. See the instructions for
Form 1040, Schedule A, C, or E for how to report the mortgage interest. Also,
for more information, see Pub. 936 and Pub. 535.
Payer's/Bo
ower's taxpayer identification number (TIN). For your protection,
this form may show only the last four digits of your TIN (SSN, ITIN, ATIN, or EIN).
However, the issuer has reported your complete TIN to the IRS.
Account number. May show an account or other unique number the lender has
assigned to distinguish your account.
Box 1. Shows the mortgage interest received by the recipient/lender during the
year. This amount includes interest on any obligation secured by real property,
including a home equity, line of credit, or credit card loan. This amount does not
include points, government subsidy payments, or seller payments on a
“buydown” mortgage. Such amounts are deductible by you only in certain
circumstances. Caution: If you prepaid interest in 2018 that accrued in full by
January 15, 2019, this prepaid interest may be included in box 1. However, you
cannot deduct the prepaid amount in 2018 even though it may be included in
ox 1. If you hold a mortgage credit certificate and can claim the mortgage
interest credit, see Form 8396. If the interest was paid on a mortgage, home
equity, line of credit, or credit card loan secured by your personal residence, you
may be subject to a deduction limitation.
Box 2. Shows the outstanding mortgage principal on the mortgage as of
January 1, 2018.
Box 3. Shows the date of the mortgage origination.
Box 4. Do not deduct this amount. It is a refund (or credit) for overpayment(s)
of interest you made in a prior year or years. If you itemized deductions in the
year(s) you paid the interest, you may have to include part or all of the box 4
amount on the “Other income” line of your 2018 Form 1040. No adjustment to
your prior year(s) tax return(s) is necessary. For more information, see Pub. 936
and Itemized Deduction Recoveries in Pub. 525.
Box 5. If an amount is reported in this box, it may qualify to be treated as
deductible mortgage interest. See the 2018 Schedule A (Form 1040) instructions
and Pub. 936.
Box 6. Not all points are reportable to you. Box 6 shows points you or the seller
paid this year for the purchase of your principal residence that are required to be
eported to you. Generally, these points are fully deductible in the year paid, but
you must subtract seller-paid points from the basis of your residence. Other
points not reported in box 6 may also be deductible. See Pub. 936 to figure the
amount you can deduct.
Box 7. If the address of the property securing the mortgage is the same as
the payer's
o
ower's, either the box has been checked, or box 8 has been
completed.
Box 8. This is the address or description of the property securing the mortgage.
Box 9. If more than one property secures the loan, shows the number of properties
securing the mortgage. If only one property secures the loan, this box may be
lank.
Box 10. The interest recipient may use this box to give you other information,
such as real estate taxes or insurance paid from escrow.
Future developments. For the latest information about developments related to
Form 1098 and its instructions, such as legislation enacted after they were
published, go to www.irs.gov/Form1098.
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AC309 Unit 3: Application Assignment – Individual Deduction
Description
2018 Expense Amount
Source Document
Additional Details
Gambling losses
5,150
Casino account summary
Bob reported $4,750 of gambling winnings on his 2018 Schedule 1, Line 21
Woodworking expenses
3,330
Store receipts
Bob whittles animals out of wood as a ho
y and sells them to friends & family; in 2018 he reported $5,100 of woodworking income on his 2018 Schedule 1, Line 21
Unreimbursed qualified medical expenses
19,980
Hospital invoices
Bob underwent a costly life-saving surgery in 2018 – this amount represents his out-of-pocket costs that were not reimbursed through insurance
Mortgage interest
11,875
Form 1098
Mortgage is secured by Bob’s principal residence
Home Equity Line of Credit (“HELOC”) interest
2,385
Bank statement
Bob’s principal residence was used to secure the loan; loan proceeds were used to pay off credit card debt
Home Equity Line of Credit (“HELOC”) interest
4,625
Bank statement
Bob’s principal residence was used to secure the loan; loan proceeds were used to purchase a new roof for Bob’s principal residence
State income taxes
8,185
State tax return
State sales taxes
2,240
Receipts
Real estate taxes
2,650
Bank statement
Personal property taxes
470
Car registration
Tax preparation fees
300
Receipts
Union dues
1,500
Paystubs
Cash gifts to charity
750
501(c)(3) receipts
Cash gifts to local homeless man
1,040
Personal records
2018 Schedule A (Form 1040)
DO NOT FILE
October 9, 2018
DRAFT AS OF
SCHEDULE A
(Form 1040)
Department of the Treasury
Internal Revenue Service (99)
Itemized Deductions
▶ Go to www.irs.gov/ScheduleA for instructions and the latest information.
▶ Attach to Form 1040.
Caution: If you are claiming a net qualified disaster loss on Form 4684, see the instructions for line 16.
OMB No XXXXXXXXXX
2018
Attachment
Sequence No. 07
Name(s) shown on Form 1040 Your social security numbe
Medical
and
Dental
Expenses
Caution: Do not include expenses reimbursed or paid by others.
1 Medical and dental expenses (see instructions XXXXXXXXXX
2 Enter amount from Form 1040, line 7 2
3 Multiply line 2 by 7.5% (0.075) . XXXXXXXXXX3
4 Subtract line 3 from line 1. If line 3 is more than line 1, enter XXXXXXXXXX4
Taxes You
Paid
5 State and local taxes.
a
State and local income taxes or general sales taxes. You may
include either income taxes or general sales taxes on line 5a,
ut not both. If you elect to include general sales taxes instead
of income taxes, check this box . . . . . . . . ▶ XXXXXXXXXX5a
State and local real estate taxes (see instructions XXXXXXXXXX5b
c State and local personal property taxes XXXXXXXXXX5c
d Add lines 5a through 5c . . . XXXXXXXXXX5d
e Enter the smaller of