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There are situations in which certain items can be included as home mortgage interest and others cannot.

Per IRS Publication 17 Your Federal Income Tax (For Individuals):

Mortgage Prepayment Penalty

If you pay off your home mortgage early, you may have to pay a penalty. You can deduct that penalty as home mortgage interest provided the penalty is not for a specific service performed or cost incurred in connection with your mortgage loan.

To enter home mortgage interest in the TaxACT program:

  1. From within your TaxACT return (Online or Desktop) click on the Federal Q&A tab
  2. Click Itemized or Standard Deductions to expand the category, then click Interest expenses
  3. The program will proceed with the interview questions to enter the appropriate information

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