Will underwriter deny FHA mortgage loan application based on accidental wrong tax form filed in 2006?

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My co-applicant accidentally used the wrong form to file his taxes in 2006. He had a small amount of 1099 earnings (approx. $ 5000), and used the 1040EZ form instead of the 1040 form that is supposed to be used with 1099 earnings. We now know that you are not supposed to use the 1040EZ form for 1099 earnings. We think that this means that he didn’t pay medicare and social security taxes for this portion of his income. Is this something that the underwriter will deny our loan for? Will they just make him amend his 2006 filing and pay the balance? This wasn’t done on purpose, and he did file the taxes, just on the wrong form. Do we need to worry that we will be denied the loan because of this? Everything else that we know of is perfectly fine with regards to our application.

  1. Reply
    May 26, 2011 at 2:29 pm

    I don’t think they will care, as long as he paid his income tax.

  2. Reply
    May 26, 2011 at 2:39 pm

    I doubt an underwriter would deny you for this. An amended return may have to be filed, but I don’t even think that will happen.

    I wouldn’t worry about something that hasn’t occurred yet.

  3. Reply
    Ed Atun
    May 26, 2011 at 3:18 pm

    The rules are very strict for the FHA loans. An amended tax return should suffice.
    I think the 1040EZ is allowed for small incomes or earnings. That is why it is EZ. So your example does not make sense. I think it is something else that is holding up this loan..

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