Mortgage interest is entered in the Itemized Deductions section of TaxAct and will appear on federal Schedule A.
To maximize your tax benefit, TaxAct will use whichever is higher: your itemized deductions or the standard deduction for your filing status.
If your home equity debt wasn't used to buy, build, or improve a qualified residence, then you can't deduct the interest of your home equity loan.
If you bought your home after December 15, 2017, you can deduct interest only on the first $750,000 ($375,000 if married filing separately) of your mortgage.
To enter the information from Form 1098 Mortgage Interest Statement into TaxAct:
- 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 titled Did you receive Form 1098 reporting mortgage interest? choose whether 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 [Tax Year], and then click No to reach the screen Enter real estate taxes assessed and paid in [Tax Year].
- Enter the qualified amount of real estate taxes you paid during the tax year