Why Did I Receive Two 1098 Forms From My Amerisave Mortgage?

Receiving two 1098 forms from Amerisave Mortgage can be perplexing for homeowners during tax season. Understanding why this happens is essential, as it influences how you report mortgage interest, a significant tax deduction.

This article explains the reasons behind receiving multiple 1098 forms and offers guidance on handling them effectively.

Mortgage Servicing Transfers

Mortgage servicing transfers are a common occurrence in the mortgage industry and often lead to confusion. These transfers happen when the rights to service a mortgage loan are sold or transferred to another company. Under the Real Estate Settlement Procedures Act (RESPA), borrowers must be notified of such changes. While the terms of the mortgage remain unchanged, payments are redirected to a new servicer.

When servicing transfers occur, multiple 1098 forms may be issued. Each servicer reports the mortgage interest they received during their servicing period. For example, if Amerisave Mortgage serviced your loan for part of the year before transferring it to another company, both entities would issue separate 1098 forms detailing the interest they received. This ensures compliance with IRS regulations requiring accurate reporting of mortgage interest.

Transfers late in the year can delay receipt of 1098 forms, complicating tax filing. Homeowners should keep track of their mortgage payments and any correspondence about servicing changes to ensure all interest payments are accurately reported on their tax returns.

Receiving Multiple 1098 Forms

Receiving multiple 1098 forms indicates that more than one company serviced your loan during the year. Each form reflects the interest paid to a specific servicer for the time they managed the loan. This situation is common when loans are transferred between servicers and requires careful record-keeping.

IRS regulations mandate that each servicer report the mortgage interest they received. This ensures homeowners can accurately claim their mortgage interest deduction. Homeowners should compare the amounts reported on the 1098 forms to their payment records. Any discrepancies should be resolved promptly to avoid errors in tax filings.

Additionally, homeowners should verify the servicer information on each form, including the servicer’s name, address, and taxpayer identification number. Keeping organized records of this information simplifies filing and ensures compliance with IRS requirements.

Verifying Mortgage Interest on Each 1098

Verifying the accuracy of mortgage interest reported on each 1098 form is essential. Cross-check the interest amounts on the forms with your payment records, such as bank statements or receipts. This confirms the accuracy of the reported interest and ensures all eligible interest is accounted for. If discrepancies arise, contact the servicer to resolve them.

Homeowners should also understand the IRS guidelines for mortgage interest deductions. For 2024, interest is deductible on up to $750,000 of qualified mortgage debt for loans incurred after December 15, 2017. It’s important to ensure reported interest aligns with this limit, particularly if refinancing or multiple loans occurred during the year.

For home equity loans, interest is deductible only if the funds were used to buy, build, or improve the home securing the loan. Ensure 1098 forms distinguish between traditional mortgage interest and home equity interest, as the IRS closely examines these distinctions.

Filing Taxes When You Have More Than One Servicer

Filing taxes with multiple servicers requires careful attention to detail. Start by organizing all 1098 forms received. Add the interest amounts from each form to calculate the total mortgage interest paid, which will be reported on Schedule A of Form 1040 for the mortgage interest deduction.

The Tax Cuts and Jobs Act (TCJA) affects mortgage interest deductions, particularly with the $10,000 cap on state and local tax deductions. Taxpayers should evaluate whether itemizing deductions, including mortgage interest, outweighs the benefits of the standard deduction. Using tax software or consulting a tax professional can help determine the best approach.

Communicating With Your Servicer

Clear communication with your mortgage servicer is vital for accurate tax reporting. If you receive multiple 1098 forms, contact each servicer with questions about the interest amounts reported. Use the customer service contact information on the 1098 form to request a breakdown of payments or confirm the dates the servicer managed your loan.

If errors are found, servicers are required to issue corrected 1098 forms. Request written confirmation of any corrections and retain this documentation in case of an IRS inquiry. If a 1098 form is delayed, contacting the servicer can expedite the process and help you meet tax deadlines.

To stay organized, consider using your servicer’s online portal to access payment histories and statements. Familiarizing yourself with these tools can simplify verifying interest payments and reduce the likelihood of discrepancies. Staying informed and engaged with your servicer ensures smoother tax preparation and mortgage management.