Tax Reform Update: You can no longer deduct interest on home equity debt if it wasn't used to buy, build, or improve a qualified residence. Also, you can only deduct interest on the first $375,000 of your mortgage if you bought your home after December 15, 2017.
Mortgage interest is entered in the Itemized Deductions section of TaxAct® and will appear on federal Schedule A. To enter the information from Form 1098 Mortgage Interest Statement into the TaxAct program:
- From within your TaxAct return (Online or Desktop), click Federal. On smaller devices, click in the upper left-hand corner, then choose Federal.
- Click Itemized or Standard Deductions in Federal Quick Q&A Topics to expand the category and then click Interest Expenses
- On the screen Did you receive Form 1098 reporting mortgage interest? choose whether or not the mortgage interest was reported on Form 1098
- The program will proceed with the interview questions for you to enter or review the appropriate information
If Form 1098 reports real estate (property) taxes paid:
- Click Federal. On smaller devices, click in the upper left-hand corner, then choose Federal.
- Click Itemized or Standard Deductions to expand the category and then click Taxes Paid
- Click Continue on the screen Enter state and local income taxes you paid during 2018, and then click No to reach the screen Enter real estate taxes assessed and paid in 2018
- Enter the qualified amount of real estate taxes you paid during the tax year
TaxAct will use the higher of your itemized deductions or the standard deduction for your filing status to maximize the tax benefit to you.