Feb 202010
Also, do I need a HUD settlement statement for the mortgage, and do we need a written receipt or statement from our daycare operator that we paid out $5000 in daycare?
My wife and I are filing jointly but we are seperated and are divorcing next week, so she is on me about filing but I havent gotten my 1098 yet. I have tried to google these questions and haven’t got the answers I need yet.
Thanks!
You need proof of the amounts claimed if you are audited. Many mortgage companies send a “substitute” 1098 that has the same information. You don’t need to attach the 1098 to your tax return so if you have the correct information and can prove it at audit then take the deduction.
Ditto for anything from the HUD-1 closing statement that you are claiming on your return. Keep in mind that although points are deductible they will also be on the Form 1098 or substitute 1098 in the year of purchase in most cases. Most other items on the HUD-1 statement are not deductible but are used to adjust your cost basis in the property if they have any impact at all. Prepaid insurance and taxes have no tax impact. The adjustments for property taxes can go either way depending upon which side of the sheet that they’re on.
You must be able to prove how much you paid for daycare if you are audited. The easiest way is to pay by check and annotate the memo line on the check. Your cancelled checks are adequate proof of the costs. You must have the providers TIN to claim any childcare costs.
There’s no need to rush to file prior to the divorce. Since you were still married on 12/31 you can file a joint return regardless of your marital status when you actually file the return. Don’t be pressured on this since if you mess it up you’ll have to file an amended return and that can get REAL messy especially after a divorce is final and you’ve both gone your separate ways.