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PDtax, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 4027
Experience:  35 years tax experience, including four years at a Big 4 firm.
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Received a 1099-MISC from Chase mortgage for an amount,

Customer Question

received a 1099-MISC from Chase mortgage for an amount, 'other income'. I had received no such amount from them. My house was in foreclosure (is now at the moment in suspended foreclosure), so when I asked chase they told me it was for escrow and some other things. I don't think they can send me a 1099-MISC when I am in foreclosure and therefore not paying on my property. I have a call in to IRS but may never hear back. I am trying to find out if in fact I have to file this bogus 1099-Misc
JA: The Accountant will know how to help. Is there anything else the Accountant should be aware of?
Customer: chase on the phone, originally, some time back, had told me it may depend on my state ?? as to whether I have to file or pay on it?? my state is Minnesota, if that is in fact the case that the above applies
Submitted: 1 month ago.
Category: Tax
Expert:  PDtax replied 1 month ago.

Hi from just answer. I'mCustomer I'll assist.

Expert:  PDtax replied 1 month ago.

You might have to report the income, since IRS got a copy of the firm and will expect you to report it. It doesn't mean you have to pay tax on it.

There are a couple of things that might act to offset the 1099 out allow you to exclude it from tax. One is the mortgage statement you will get from the bank. Income they pay you but keep to pay down your mortgage will create larger interest deductions. You might not have a tax to pay if this is the case.

Another way out is to disclaim this income from insolvency. This is very common now, and allows you to use form 982 to remove this income from your taxable income.

Best to review your specifics with your tax pro, to see which option is best for you.

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