I received a letter from the IRS saying we owe tax for 2014 for several "mistakes", one of which is that I claimed our mortgage insurance premiums as a deduction, but no mortgage insurance was reported by BB&T to the IRS. I pulled my tax transcripts and sure enough, the 1098 information the IRS received shows mortgage interest, but no amount for mortgage insurance. We sold that house in December 2014, at which time the mortgage was obviously satisfied. I can't find the 1098, so I will have to call the bank to figure out what's going on, but why would this be happening? I wouldn't just claim mortgage insurance premiums if I didn't see the amount somewhere! And I know I paid PMI that year!
So confused and worried now that I wasn't supposed to claim mortgage insurance for some reason I'm not aware of. Could it be related to having gotten a loan modification in January? Or because we sold the house in December?
