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How do I claim mortgage interest?

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How do I claim mortgage interest?


If you paid $600 or more of mortgage interest (including certain points and mortgage insurance premiums) during the year on any one mortgage, you generally will receive a Form 1098 or a similar statement from the mortgage holder. You will receive the statement if you pay interest to a person (including a financial institution or cooperative housing corporation) in the course of that person's trade or business. A governmental unit is a person for purposes of furnishing the statement.

The statement for each year should be sent to you by January 31 of the following year. A copy of this form will also be sent to the IRS.

The statement will show the total interest you paid during the year, any mortgage insurance premiums you paid, and if you purchased a main home during the year, it also will show the deductible points paid during the year, including seller-paid points. However, it should not show any interest that was paid for you by a government agency.

As a general rule, Form 1098 will include only points that you can fully deduct in the year paid. However, certain points not included on Form 1098 also may be deductible, either in the year paid or over the life of the loan. See the earlier discussion of Points to determine whether you can deduct points not shown on Form 1098.

Prepaid interest on Form 1098.   If you prepaid interest in 2014 that accrued in full by January 15, 2015, this prepaid interest may be included in box 1 of Form 1098. However, you cannot deduct the prepaid amount for January 2015 in 2014. (See Prepaid interest , earlier.) You will have to figure the interest that 

Refunded interest.   If you received a refund of mortgage interest you overpaid in an earlier year, you generally will receive a Form 1098 showing the refund in box 3. See Refunds of interest , earlier.

Mortgage insurance premiums.   The amount of mortgage insurance premiums you paid during 2014 may be shown in Box 4 of Form 1098. See Mortgage Insurance Premiums , earlier.

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Views: 370 Created on: Jun 15, 2013
Date updated: Oct 01, 2015

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