Did You Skip Mortgage Payments Last Year?
In March, as COVID-19 began to wreak havoc on the job market and caused millions of Americans to lose their jobs as businesses shuttered, federal lawmakers and regulators took the extraordinary step of extending forbearance to mortgage borrowers. Being in forbearance allowed homeowners to pause making their monthly mortgage payments — originally, borrowers could request up to 12 months of forbearance, though that was recently extended to 15 months.
Whether you’re still in forbearance now or resumed making monthly payments at some point in the past year, there could be implications for your taxes, especially if you plan to claim the mortgage interest deduction.