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Mortgage Tax Deductions

What is mortgage interest?

Home mortgage interest is any interest you pay on a loan secured by your home (main home or a second home).

When are mortgage interest payments tax deductible?

Mortgage interest tax deductions are allowed only if you must be legally liable for the loan. You cannot deduct payments you make for someone else if you are not legally liable to make them.

What mortgage interest payments qualify for mortgage tax deductions?

The loan may be a mortgage to buy your home, a second mortgage, a line or credit or a home equity loan.

How to report Home mortgage interest for tax deductions?

Home mortgage interest payments are reported  on line 10 of Schedule A if you receive a Form 1098, Mortgage Interest Statement.

What if I don't receive the Form 1098?

If you don't receive the form 1098, you can report your home mortgage interest on line 11 of Schedule A.

Mortgage Interest tax deduction tips

If you paid home mortgage interest to the person from whom you bought your home (such as the seller financed mortgage) include the name, social security number, and address of the person to whom you paid the interest.

If you and at least one other person (other than your spouse if filing a joint return) were liable for and paid the interest on the mortgage and the other person received the Form 1098, attach a statement to your return showing the name and address of that person and the amount of interest you each paid. Deduct only your share of the mortgage interest payments.


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