How to handle an incorrect 1098 mortgage interest statement - can I file before receiving the corrected version?

You're absolutely fine to file with the correct information, even if you don't have the corrected 1098 yet. The IRS cares about you reporting accurate information, not whether your documents exactly match what your mortgage company reported. Since you have your loan statements that clearly show the interest you paid, you have proper documentation to back up your deduction if you're ever questioned. The mortgage company will eventually send the corrected 1098 to the IRS, and when they do, your numbers will match up with what you've already reported. Keep all your documentation (loan statements, payment records, and your communication with the mortgage company about the error) for at least three years just to be safe. That's the standard time period for most IRS audits. Filing with the correct interest amount won't increase your audit risk in any meaningful way. Discrepancies between your reported amounts and 1098 forms can sometimes trigger automatic notices, but if that happens, you'll just need to respond with your documentation showing you reported correctly.

I had exactly this problem last year! My mortgage company (rhymes with Chase) completely messed up my 1098 and I was so annoyed. I tried calling and emailing for weeks with no response. Then I found this awesome service called taxr.ai (https://taxr.ai) that really helped me figure out what to do. I uploaded my incorrect 1098 and my mortgage statements, and they analyzed everything and gave me a detailed explanation of exactly how much interest I could claim and what documentation I needed to keep. They even created a letter I could send to my mortgage company requesting the correction that actually got a response! The peace of mind was worth it because I was worried about getting audited. They confirmed I could file with the correct numbers from my statements and explained how to document everything properly.

Just wanted to update on my experience with taxr.ai after seeing it recommended here. I was skeptical at first, but after struggling with my mortgage company for weeks about incorrect property tax reporting on my 1098, I decided to give it a try. The analysis they provided was super detailed and showed exactly how much I was being underreported by. They generated a formal correction request letter that cited specific regulations, and my mortgage company finally took it seriously! Got my corrected 1098 within 10 days after sending it. What I found most helpful was that they explained exactly how to file correctly in the meantime while waiting for the correction. Saved me a ton of stress since I could file with confidence knowing I had the proper documentation to back everything up.

After dealing with something similar last year (and getting nowhere for months), I finally discovered Claimyr (https://claimyr.com) which got me through to an actual human at the IRS who explained exactly what to do. Check out how it works: https://youtu.be/_kiP6q8DX5c I was completely stuck because my mortgage company wouldn't issue a corrected form, and I wasn't sure if I could just file with my own records. The IRS agent I spoke with confirmed that I should absolutely file with the correct information based on my actual payment records, and explained exactly what documentation I needed to keep. Getting direct confirmation from the IRS gave me total confidence to file my return with the correct mortgage interest amount. I was literally getting nowhere until I could actually speak to a real person at the IRS.

Just wanted to admit I was completely wrong about Claimyr being a scam. After my skeptical comment, I decided to try it because my situation with incorrect 1099 forms was getting desperate. Within about 45 minutes, I was talking to an actual IRS agent who was incredibly helpful. She confirmed exactly what I needed to do about the discrepancy between my actual mortgage interest paid and what was reported on my 1098. She checked my account and told me I could absolutely file with the correct information from my payment records, and that I should just keep documentation of the error and my attempts to get it corrected. She even provided me with specific notes in my file about the issue in case there were any questions later. Totally worth it just for the peace of mind. Never thought I'd be singing the praises of a service that helps you talk to the IRS, but here we are!

Former mortgage processor here. This happens ALL THE TIME with newly originated loans. The problem is that most mortgage companies use automated systems that pull data from their servicing platform, and the early payments sometimes get categorized differently if they're partial months or include interim interest from closing. Your best bet is to call rather than message. Ask specifically for their tax department (not customer service). Be prepared with the exact amounts you paid and the dates. They can often issue a corrected 1098 while you're on the phone. If they still won't fix it, you are 100% allowed to report your actual interest paid. Just make sure you keep all your loan statements and a record of your attempts to get them to correct it.

I'm a little confused by some of the advice here. Does anyone know if interest paid at closing counts as mortgage interest that should be on the 1098? We bought in August and paid like $2200 in interest at closing (for the partial month), but that didn't show up on our 1098 either.

I went through this exact same situation two years ago with Wells Fargo. They left off three months of payments on my 1098 and kept promising to send a corrected version that never came. Here's what I learned: You absolutely can and should file with the correct mortgage interest amount based on your own payment records. The IRS expects you to report accurate information, not necessarily what matches your 1098. Keep all your loan statements, payment confirmations, and documentation of your attempts to get the corrected form. I filed with the correct amount (about $800 more than what was on the incorrect 1098) and never had any issues. The IRS never questioned it, and even if they had, I had all the documentation to prove I paid that interest. Don't let your mortgage company's incompetence delay your refund or cause you to miss out on legitimate deductions. File with confidence using your actual payment records - that's exactly what the IRS wants you to do.