New Final Mortgage Insurance Premium Reporting Regulations Apply to 2013 & Thereafter

The IRS has issued final regulations regarding the reporting requirements for taxpayers that receive mortgage insurance premiums. These regulations apply only to 2013 and any future years for which the mortgage insurance deduction may apply.

Deduction Set to Expire

Certain taxpayers that pay mortgage insurance premiums on their personal residence may be allowed an itemized deduction for those premiums as additional qualified residence mortgage interest on their personal income tax returns. The availability of this deduction is scheduled to expire at the end of 2013, so reporting of these mortgage insurance premiums will not be required in future years unless the deduction for mortgage insurance premiums paid is extended by Congress.

Mortgage Insurance Reporting

The amount of qualified mortgage insurance paid is reported in Box 4 of Form 1098, Mortgage Interest Statement. A bank that receives premiums for mortgage insurance from any individual aggregating $600 or more on a mortgage-by-mortgage basis must report this amount for the 2013 tax year as a result of the final regulations.

If you have any questions on the new regulations, please contact your local Eide Bailly professional.