Need IRS 1098 Mortgage Interest Paid

[jpbago]

1 hour ago, AlwaysRt said:

When filing a joint return what difference does it make if it is you or your wife (other than what column).

I see that his wife has a TIN but I do not see where she has a SSN to be able to file a joint return.

[robert k]

22 minutes ago, jpbago said:

I see that his wife has a TIN but I do not see where she has a SSN to be able to file a joint return.

I believe you only need a SSN if you are a US citizen or legal resident in the US.

[AlwaysRt]

39 minutes ago, jpbago said:

I see that his wife has a TIN but I do not see where she has a SSN to be able to file a joint return.

I am working on the ITIN crap for my wife now, just so I can file my taxes. Would like to file Married - separately, with her not filing at all since she is a Filipina and never even applied for a US Visa much less anything else. Turns out I have to get her a ITIN so I can file, separate or joint doesn't matter. She does not qualify for a US SSN but since she is married to me she is required to have an ITIN. Here is the IRS link https://www.irs.gov/individuals/individual-taxpayer-identification-number-itin

[earthdome]

12 hours ago, jpbago said:

I see that his wife has a TIN but I do not see where she has a SSN to be able to file a joint return.

You only need the SSN if your wife immigrates to the US. If your wife stays outside the US you need an ITIN in order to file your US tax return. You can do this as part of filing your return by including a W-7 with your return which requests the ITIN. I did this for the first year we were married before we moved back to the US. 

[AlwaysRt]

25 minutes ago, earthdome said:

You only need the SSN if your wife immigrates to the US. If your wife stays outside the US you need an ITIN in order to file your US tax return. You can do this as part of filing your return by including a W-7 with your return which requests the ITIN. I did this for the first year we were married before we moved back to the US. 

The only issue is getting the correct supporting document(s) verified, notified, copy-fied, triplicate-eyed, ribbonized.... blah blah blah Pain in the butt.

[ITGeek]

G'day everyone!  Thanks for all the responses!  I'm a little relieved to see I'm not the the first nor last expat to encounter this situation.

So I've done a little digging and have some additional information that may help anyone with a similar situation.  According to IRS Publication 936, it states the following for filers to report mortgage interest not reported to them on a Form 1098.  The important information is in bold:

Quote

Deduct home mortgage interest that was not
reported to you on Form 1098 on Schedule A
(Form 1040), line 11. If you paid home mortgage
interest to the person from whom you
bought your home, show that person's name,
address, and taxpayer identification number
(TIN) on the dotted lines next to line 11. The
seller must give you this number and you must
give the seller your TIN. A Form W-9, Request
for Taxpayer Identification Number and Certification,
can be used for this purpose. Failure to
meet any of these requirements may result in a
$50 penalty for each failure. The TIN can be either
a social security number, an individual taxpayer
identification number (issued by the Internal
Revenue Service), or an employer
identification number.

 So I'm currently looking through the loan documentation to determine if a W-9 form was filed.  I am a co-signer on the mortgage, since my income was used to qualify.  However, I had signed a SPA (Special Power of Attorney) for my wife to sign loan papers, since I was in the US at time the loan closed.  I had included previous 3 years IRS tax returns and W-2 statements to prove I met income requirements.  All of those documents have my SSN on them.  My wife did not have an IRS TIN (she is non-resident alien) until about 6 mo's after the loan so I know a W-9 was not filed with her TIN.

If I find that a W-9 form was not filed,  I will have to contact them, file one and obtain their IRS TIN number to include on my Form 1040, Schedule A, Line 11 filing.

It definitely is "More Fun in the Philippines"  

Edited February 2, 2017 by ITGeek
grammar corrections

[earthdome]

1 hour ago, ITGeek said:

G'day everyone!  Thanks for all the responses!  I'm a little relieved to see I'm not the the first nor last expat to encounter this situation.

So I've done a little digging and have some additional information that may help anyone with a similar situation.  According to IRS Publication 936, it states the following for filers to report mortgage interest not reported to them on a Form 1098.  The important information is in bold:

 So I'm currently looking through the loan documentation to determine if a W-9 form was filed.  I am a co-signer on the mortgage, since my income was used to qualify.  However, I had signed a SPA (Special Power of Attorney) for my wife to sign loan papers, since I was in the US at time the loan closed.  I had included previous 3 years IRS tax returns and W-2 statements to prove I met income requirements.  All of those documents have my SSN on them.  My wife did not have an IRS TIN (she is non-resident alien) until about 6 mo's after the loan so I know a W-9 was not filed with her TIN.

If I find that a W-9 form was not filed,  I will have to contact them, file one and obtain their IRS TIN number to include on my Form 1040, Schedule A, Line 11 filing.

It definitely is "More Fun in the Philippines"  

I think this is referring to cases where your home loan is from an individual rather than a bank. The individual you obtained the loan from must have a TIN. In your case with a loan from a bank this doesn't apply. It appears these rules are written with the assumption that both parties on either side of the loan agreement pay US taxes. I strongly urge you to contact a tax professional who has experience filing taxes for expats. I seem to recall that others on this forum at one time had made recommendations or knew someone with this experience in the Philippines.

I recommend that if you can not resolve this before the Apr 15 filing date you file your income taxes without including the home mortgage deduction. Once you resolve the situation you can file an amended return to get the additional refund.

 

Edited February 2, 2017 by earthdome

[ITGeek]

On 2/2/2017 at 8:26 PM, earthdome said:

I think this is referring to cases where your home loan is from an individual rather than a bank. The individual you obtained the loan from must have a TIN. In your case with a loan from a bank this doesn't apply. It appears these rules are written with the assumption that both parties on either side of the loan agreement pay US taxes. I strongly urge you to contact a tax professional who has experience filing taxes for expats. I seem to recall that others on this forum at one time had made recommendations or knew someone with this experience in the Philippines.

I recommend that if you can not resolve this before the Apr 15 filing date you file your income taxes without including the home mortgage deduction. Once you resolve the situation you can file an amended return to get the additional refund.

Hi Earthdome,

I checked with my CPA's (brother and dad) they said in this case the rule applies to individual or foreign banks.  Since RCBC is FATCA compliant, a W-9 is acceptable in lieu of a 1098.  Foreign banks aren't required to pay US taxes on foreign loans.  However, US Citizens are completely able to deduct any mortgage interest (domestic or foreign).  For same reason US expats can be taxed on any foreign income.  US expats filing deadline is June 15th, not April 15th.  If you are due a refund, then you get a automatic six month extension (October 15th).  The IRS cares more when you OWE THEM, not when they owe you.  I found that out last year while awaiting my spouses ITIN to be processed.  I didn't get my federal refund until end of November 2016 and CA state refund a few weeks later.

This year is going to be interesting filing.  While I at least get an extra deduction with a child born in 2016 (already have CRBA, SSN and US Passport for him), I ended up cashing out stock, 401k and IRA before age of 59 1/2.  Fortunately, taxes will be minimal.  I still have a stock loss offset from 2015 that I can apply towards 2016 capital gains.  In regards to the early 401k/IRA withdraw penalty, it is waived because I am permanently disabled as of 2015.  Thankfully, I have LTD benefits from my former employer that cover my income and even supplements SSDI to 65% my former pay once that is approved (a two year process).

[earthdome]

7 hours ago, ITGeek said:

Hi Earthdome,

I checked with my CPA's (brother and dad) they said in this case the rule applies to individual or foreign banks.  Since RCBC is FATCA compliant, a W-9 is acceptable in lieu of a 1098.  Foreign banks aren't required to pay US taxes on foreign loans.  However, US Citizens are completely able to deduct any mortgage interest (domestic or foreign).  For same reason US expats can be taxed on any foreign income.  US expats filing deadline is June 15th, not April 15th.  If you are due a refund, then you get a automatic six month extension (October 15th).  The IRS cares more when you OWE THEM, not when they owe you.  I found that out last year while awaiting my spouses ITIN to be processed.  I didn't get my federal refund until end of November 2016 and CA state refund a few weeks later.

This year is going to be interesting filing.  While I at least get an extra deduction with a child born in 2016 (already have CRBA, SSN and US Passport for him), I ended up cashing out stock, 401k and IRA before age of 59 1/2.  Fortunately, taxes will be minimal.  I still have a stock loss offset from 2015 that I can apply towards 2016 capital gains.  In regards to the early 401k/IRA withdraw penalty, it is waived because I am permanently disabled as of 2015.  Thankfully, I have LTD benefits from my former employer that cover my income and even supplements SSDI to 65% my former pay once that is approved (a two year process).

Sounds like you have all your bases covered. Good job.