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my interest only loan makes my deduction for interest $5000 higher than the $6900 the irs suggests for my income, dont they figure in the fact that a lot of people have these loans now?

2007-02-25 13:02:47 · 3 answers · asked by fires 1 in Business & Finance Taxes United States

3 answers

As long as you have your 1098 showing the amount of interest paid, you should be fine. If you were to be audited, most times providing the proof of the deduction takes care of any issues

2007-02-25 13:08:00 · answer #1 · answered by Anonymous · 1 0

I would say there is a very large chance you will have at least a computer audit. The IRS has multi-million dollar supercomputers that run the numbers on just about every tax income return. There is a complex formula and if the computer returns a value statistically higher than it should be then another computer checks to make sure the math was done correctly on your end. It also then looks for any blantant inaccuracies on your return. Then depending on the results of these computer audits the IRS will then decide whether or not to do an actual hand audit. But bottom line, as long as you haven't lied on your taxes even in an audit you have nothing to worry about. If you haven't saved all your paperwork that you used to calculate your deductions or estimated some figures you could be in for a world of hurt.

2007-02-25 13:11:32 · answer #2 · answered by theusaloveitorleaveit 3 · 0 2

If you claim what's on your Form 1098, the IRS will accept your deduction without even contacting you. They get a copy of the Form 1098 and if everything matches up, you'll never even know that you were audited.

2007-02-25 14:06:07 · answer #3 · answered by Bostonian In MO 7 · 0 0

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