Where do I enter my mortgage interest paid?
To report mortgage interest paid on your federal tax return, you typically use Form 1098, which is issued by your lender. This form details the amount of mortgage interest you paid during the tax year.
Step-by-Step Guidance:
- Receive Form 1098: Your lender will send you Form 1098 by January 31st if you paid $600 or more in mortgage interest during the year.
- Report on Schedule A: If you itemize deductions, enter the mortgage interest amount from Form 1098 on Schedule A (Form 1040), line 10. This is part of your itemized deductions.
- Check for Eligibility: Only mortgage interest on loans used to buy, build, or improve your home is deductible. For details, refer to Publication 936.
- Modified AGI Consideration: If you are claiming certain credits (like the Mortgage Interest Credit), you may need to calculate your modified adjusted gross income (MAGI) using your AGI from Form 1040, plus tax-exempt interest, minus any gain from home sale. This is detailed in Form 8828.
Important Notes:
- Mortgage interest is deductible only if you itemize deductions (not if you take the standard deduction).
- The deduction is subject to loan limits and home purchase rules. For example, loans for homes over $750,000 (or $375,000 for married filing separately) may not be fully deductible.
- For more details on deductible mortgage interest, including points and qualified loan limits, refer to Publication 936.
Source:
Form 1098 - Mortgage Interest Statement
Form 8828 - Credit for Federal Tax on Certain Real Property
Publication 936 - Home Mortgage Interest Deduction
Disclaimer: Always verify details with the official IRS forms and instructions or consult a tax professional. The information provided is based on retrieved context and may not reflect all current tax law changes.