Freddie Mac Single-Family Seller/Servicer Guide 5302.4 — Tax returns and tax return information: documentation and verification requirements

This section contains information related to: ■ Tax return requirements ■ Requirements for all Mortgages with qualifying income documented with tax returns ■ Internal Revenue Service (IRS) tax transcripts ■ When tax returns are required ■ Unreimbursed employee expenses reported on tax returns Under certain circumstances, the Taxpayer First Act requires that the taxpayer’s consent be obtained prior to the use and disclosure of the taxpayer’s tax return or tax return information to a third party. If taxpayer consent is required under the Act, Sellers must ensure that the form of consent obtained from the taxpayer permits the use and sharing of the tax return or tax return information with and by any actual or potential owners of the Mortgage, as well as their service providers, successors and assigns. The signed consent form must be obtained in a timely manner and placed in the Mortgage file in accordance with Section 3301.1(b).

(a) Tax return requirements Tax returns must be: ■ The Borrower’s signed copy of the U.S. federal income tax return(s) that were most recently filed with the Internal Revenue Service (IRS) ■ A complete tax return, including all applicable schedules and forms (which includes all W-2s, K-1s and 1099s) The following are acceptable alternatives for the Borrower’s signature on the tax return(s): ■ Evidence the tax returns were filed electronically (e.g., signed Form 8879, IRS e-file Signature Authorization or equivalent), or ■ Tax transcripts that validate the information on the unsigned tax returns, or ■ A completed IRS Form 4506-C signed by the Borrower, or alternate form acceptable to the IRS that authorizes the release of comparable tax information to a third party

(b) Requirements for all Mortgages with qualifying income documented with tax returns The most recent federal income tax return is the last tax return, individual and/or business, that was filed with the IRS by the Borrower and, if applicable, the Borrower’s business. Sellers are encouraged to always confirm with the Borrower that the tax returns provided are the tax returns most recently filed with the IRS. The Seller must determine the stable monthly income which may require additional documentation and analysis. Refer to Section 5304.1(g) for additional guidance about selfemployed income and supporting documentation when the tax returns for the most recent calendar year are not yet available. For Mortgages with qualifying income documented on tax returns, the following date and documentation requirements must be met, based on the Application Received Date and the Note Date for the Mortgage. Application Received Date Note Date Age of tax return and other documentation requirements Before: April 15 of the Note year On or after: January 1 of the Note year Before: May 31 of the Note year ■ Most recent federal income tax return(s) filed with the IRS ■ The most recent tax return(s) must be no older than the tax return(s) that were due to be filed prior to November 1 of the previous calendar year (e.g., if the Note Date is February 15, 2026, the most recent tax return(s) can be no older than 2024) On or after: April 15 of the Note year Before: May 31 of the Note year If the Borrower has not filed their tax return(s) with the IRS for the previous calendar year (e.g., the Note Date is May 1, 2026, and tax return(s) for 2025 have not been filed): ■ The most recent tax returns must be no older than the calendar year two years before the Note year (e.g., if the Application Received Date Note Date Age of tax return and other documentation requirements All On or after: May 31 of the Note year Before: November 1 of the Note year Note Date is June 1, 2026, the most recent tax returns can be no older than 2024) ■ The Seller must obtain: ❑ IRS confirmation verifying tax transcript(s) are not yet available for the tax return(s) (individual, and business, if applicable) from the calendar year prior to the Note year1,2; and ❑ Evidence of completed IRS tax filing extension(s) for the calendar year prior to the Note year (e.g., if using IRS tax extension forms to evidence tax filing extension, include IRS Form(s) 4868 and/or 7004, as applicable)3. For Mortgages originated using an automated income assessment using tax data for self-employed and/or rental income, as described in Sections 5304.2 and 5306.2, respectively, IRS Form(s) 4868 for individual tax returns, and IRS Form 7004 for business tax returns, if applicable, must be obtained and documented in the Mortgage file. All On or after: November 1 of the Note year On or before: December 31 of the Note year The most recent tax return(s) must be no older than the previous calendar year (e.g., if the Note Date is November 15, 2026, tax returns can be no older than 2025), regardless of other factors such as tax filing extension status or IRS tax filing deadline relief status. 1 If the IRS extends the tax filing due date, the IRS confirmation is required for Mortgages with Application Received Dates on or after the IRS income tax filing due date, or May 31 of the Note year, whichever occurs first; and Note Dates on or after the last day of the month following the IRS income tax filing due date, or June 30 of the Note year, whichever occurs first. 2 Alternative documentation is acceptable in lieu of the IRS confirmation that tax transcript(s) are not yet available for the business tax return(s), as follows: ▪ Confirmation business tax returns were filed after IRS filing due date for the prior year(s) (e.g., business tax return in file that was due in the prior calendar year was signed later in the year (e.g., October)) or documentation from third-party tax return preparer confirming business return that would otherwise be due has not yet been filed; and ▪ Documented evidence of continued income stability using at least one of the examples listed in Section 5304.1(g) in the row labeled “Business and/or individual tax return(s) - most recent calendar year not yet available” 3 If the IRS extends the tax filing due date, evidence of the completed IRS tax filing extension is required for Mortgages with Application Received Dates on or after the IRS income tax filing due date and Note Dates on or after the last day of the month following the IRS income tax filing due date.

(c) IRS tax transcripts If a tax transcript is obtained and contains information sufficient to meet verification requirements in Topic 5300, it may be used in lieu of other required documentation (e.g., IRS Form W-2); however, the information provided on the tax transcript often lacks certain information needed to fully evaluate the stable monthly income. Example: Individual rental property data, partnership and S corporation information is not clearly delineated in the tax transcripts. Conversely, the sole proprietorship information for Schedule C that is contained in a tax transcript may be an effective documentation alternative when reviewing the impact of a business loss incurred by self-employment. IRS confirmation verifying transcripts are not yet available for the prior calendar year are always recommended, and in certain instances are required. Refer to Section 5302.4(b) for additional information about age of tax return requirements.

(d) When tax returns are required The Seller must obtain the Borrower’s most recent federal income tax return(s) for certain types of income and/or employment characteristics if using the income to qualify the Borrower. Links to the topic specific requirements are provided in the table below. When tax returns are required Income types and/or employment characteristics Guide location Tip income – Cash and charge tips reported on IRS Form 4137 Section 5303.1(d)(ii) Income from employment by a family member, property seller, broker or other interested party to the transaction Section 5303.1

(e) Employed income from a foreign source Section 5303.1(e) Income reported on IRS Form 1099 for services performed Section 5303.1(e), Chapter 5304 Self-employed income Dividend and interest income Section 5305.1 Capital gains income Section 5305.1 Royalty payments Section 5305.1 When tax returns are required Income types and/or employment characteristics Guide location Trust income Section 5305.1 Non-employment/non-self-employment income from a foreign source Section 5305.1 Tax-exempt income (optional) Section 5305.1 Rental income (e) Unreimbursed employee expenses reported on tax returns Unreimbursed employee expenses reported on the Borrower’s federal individual income tax returns are not required to be deducted from the Borrower’s income.