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  • Form 1098 (Mortgage Interest Statement)

    Form 1098, also known as the Mortgage Interest Statement, is provided by banks or mortgage lenders to document mortgage interest paid by borrowers. This interest can be deducted on Schedule A to help reduce the overall AGI of the tax return.

     

    Steps to Add Mortgage Interest from Form 1098:

    1. Access Federal Information

    • From the left side of the main page, select Federal Information to expand the dropdown menu of federal form categories.

     

    2. Navigate to Deductions

    • Select Deductions from the list.

    • This will open the Deductions List page.

     

    3. Open Schedule A Form

    • Locate Schedule A and click Start.

     

    4. Add Mortgage Interest Paid

    • Scroll down to the Interest Paid section.

    • Enter the relevant information from Form 1098 received by the taxpayer.

     

     

    5. Specify Additional Information

    • If the interest was paid to an individual, specify this additional information.

     

    6. Additional Instructions:

    • If the taxpayer paid less than $600 in mortgage interest and it wasn't reported on Form 1098, the amount can be added on Line 8b of Schedule A.

    • If the interest was paid as points (prepaid interest), it should be added to Line 8c.



    7. Reporting Mortgage Interest for Business Purposes

    • If Form 1098 is related to a sole proprietor business, a farm, or a rental property, the interest should be reported as an expense on the respective forms:

      • Schedule C (for business)

      • Schedule F (for farming)

      • Schedule E (for rental properties)

    The content provided under this page is for informational purposes only and should not be considered legal, accounting, or tax advice.

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