Your Questions About Check My Mortgage Interest

Sandra asks…

I have two question mortgage interest and the rebate check?

I have decided against itemizing because I get a better deduction with the standard deduction So….If I have to file a schedule B rather than a schedule A for my mortgage interest how can I do that. Im using tax slayer will they just convert it to what it needs to be?

And the rebate checks, Do I have to do anything for that or just sit and wait?

admin answers:

Just sit and wait for your rebate check.

If you are qualified for a rebate, the IRS will send it to you automatically.

Under the terms of the compromise Congressional bill, married couples filing jointly would be eligible to receive a rebate of up to $1200 if they paid that much in Federal Income Tax. If you only paid $750 in taxes (less than the $1200 rebate limit), you only get back $750. If you had earned income of at least $3000, you would get at least the minimum rebate of $300. If you qualify for a rebate, you would get an additional $300 for each dependent child.

While the rebate depends on your 2007 income, it is actually a rebate toward your 2008 taxes. According to the proposed plan, in 2008, taxes would be cut from 10 percent to zero percent on the first $6,000 dollars of taxable income for individual taxpayers.

It’s like a one time tax cut for 2008, but you get the rebate now instead of waiting to file your 2008 taxes. Because this is an advance payment on your 2008 taxes, your refund next year could be more (or less!) depending on your 2008 income.

Lisa asks…

Where to claim a check for a refund of overpaid interest on my mortgage?

I have a Form 1098 for a lawsuit that was taken up with my old mortgage company and I received a check for $841 from overpaid interest into my mortgage. Where do I enter this when doing my taxes?

admin answers:

If you deducted the $841 as interest on a prior year tax return, you have to do a ‘recovery’ and add the money back on line 21 of your 1040 in the year you get the money. See irs publication 525.

James asks…

What right does my Mortgage company have to lay hands on MY Homeowners Ins. Claims check?

I had a house fire and my mortgage company is giving me the run around about sending me my First Draw, after I’ve done all they have asked.

It appears to me, this is a scam by mortgage companies to hold the insurance claims check, drawing interest on MY MONEY, and dishing it out to me when and how they get ready. WHAT?

Does anyone have any advice on this or experience (I hope not) with this situation.
Not whining, I just don’t understand why they seem to be dragging out the issuing of my repair money. Contractors have got to be paid and the MC is holding up the process, not me.

Thanks for all your answers!

admin answers:

Every insurance company will put the mortgage company on the check if the damages are over a certain amount. For most, it is $5,000.00. This is a fail safe for the insurance company and the mortgage company.

Lets say for instance, you have an older home, that might not be worth a lot of money, but to rebuild it after a devastating fire would be more than the market price of the home. Without the mortgage company on the check, the homeowner could just take the money and abandon the home to the mortgage company. In certain instances the mortgage company could force the insurance company to pay the claim again, to them, because they are an insured on the policy too. That is the power that the mortgagee clause of the policy gives to them.

They have a vested interest in making sure the house gets repaired.

Michael asks…

How does the tax deduction work for mortgage interest payments?

Is this the correct formula for the tax deduction:
Tax rate of 38.5% times all the mortgage interest I paid in the past year?

Also, If I owe $100 in taxes but my deduction is $125 (based on formula above) does that mean the govt. will send me a check for $25?

admin answers:

Mortgage interest gets deducted on Schedule A, assuming you itemize your deductions and do not use the standard deduction. The actual amount of the tax benefit depends on your tax bracket.

No, you wouldnt get a refund if your deduction is in excess of your tax liability. The deduction would reduce your liability to zero. You would not get a refund unless you made payments.

David asks…

question about getting mortgage interest back on taxes?

I would like to know if you can get the interest back from the mortgage. My husband recevies ssd and I could not work because of chemo treatments. We have no taxable income except for my fathers ss check I receuved when he past away. Can I file and get anything back?

admin answers:

The interest on your mortgage is deductible if you itemize your deductions. But if you have no income, you will pay no taxes.

The government will not reimburse you for the interest on your mortgage.

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