All of us must be gearing up as the new tax year is approaching. Amid the various forms, you must have come across 1098-T and 1098-MORT forms. Let us glimpse through the details regarding these forms.
What is the 1098-T Form?
College students receive a 1098-T form. This tax form or tuition statement form is sent from the university or college during the tax period. The 1098-T form is intended mainly for educational institutions reporting the IRS. They report to the IRS about every student who paid a quality fee and associated expenses.
Form 1098-T is mandatory for every student taxpayer where a related copy is sent to the IRS to find if the taxpayer is suitable for education credit. By January 31st educational institutions send form 1098-T to you. The form due to the IRS must be complete by February 28, if filed by mail or March 31 if filed electronically.
What if you forget to file Form 1098-T?
- For taxpayers failing to file Form 1098-T, not completing the form according to its entirety and incorrect information filing results in a penalty from the IRS.
- Penalties for Form 1098-T are also due to failure reporting TIN, reporting incorrect TIN, and paper filing if IRS mandates an e-file.
- The penalties for filing for 1098-T varies from $50 to $3282500.
What is the 1098 MORT form?
Form 1098 is a mortgage interest statement and an IRS tax form. This form is mainly for reporting mortgage interest any lender gains during the year. The interest amount a borrower pays during a year for the loan is the mortgage interest.
The amount mentioned in form 1098 includes mortgage insurance premiums, points, mortgage interest, and overpaid interest reimbursements. If the lender receives $600 or more in a year, the mortgage interest statement form 1098 must be filled. The lender must provide form 1098 to the IRS and the borrower.
What if you forget to file form 1098 MORT?
- There are several penalties for ones failing to file form 1098 timely and correctly.
- Penalties apply for electronic filers as well as paper filers.
- Tax filers are subject to a penalty for failing to report all the details on return, failure to report punctually, and providing incorrect details.
- The penalty is also applicable for filing on paper if you have to file electronically and providing an incorrect tax ID.
- The penalties vary from $30 to $250 depending on the error in filing form 1098 MORT.
For individuals looking for easy ways to file Form 1098-T or 1098, MORT should opt for tax2efile.com. This IRS authorized service provider helps tax filing at the lowest prices. Tax2efile.com takes about 24 to 48 working hours for submission of form 1098 forms for electronic filing.
For secure and instant filing electronically, tax2efile is the best. They also revert with copies and confirmation mail for filing with their site. The e-filing process is easy and simplistic, with simple steps after logging in. There is a live chat with customer care for quick solving of queries during e-filing. Get started with tax2efile.com and file your form 1098-T and 1098 MORT easily.