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Mortgage interest is entered in the Itemized Deductions section of TaxAct and will appear on federal Schedule A (Form 1040) Itemized Deductions.

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:

  1. From within your TaxAct return (Online or Desktop), click Federal. On smaller devices, click in the upper left-hand corner, then click Federal.
  2. Click Itemized or Standard Deductions in the Federal Quick Q&A Topics menu to expand, then click Interest expenses.
  3. Continue with the interview process to enter all of the appropriate information.
  4. On the screen titled Did you receive Form 1098 reporting mortgage interest?, choose whether mortgage interest was reported on Form 1098.

If Form 1098 reports real estate (property) taxes paid:

  1. From within your TaxAct return (Online or Desktop), click Federal. On smaller devices, click in the upper left-hand corner, then click Federal.
  2. Click Itemized or Standard Deductions in the Federal Quick Q&A Topics menu to expand, then click Taxes paid.
  3. Continue with the interview process to enter all of the appropriate information.
  4. On the screen titled Enter state and local income taxes you paid during 2020, click Continue, then click No.
  5. On the screen titled Enter any other deductible taxes paid in 2020, enter "Rental real estate" for the Type of tax, enter the Qualified paid amount, then click Continue.

Note that any link in the information above is updated each year automatically and will take you to the most recent version of the document at the time it is accessed.


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