Generally, the Mortgage Interest Statement is reported on an individual's tax return on the Schedule A Itemized Deductions. This means the taxpayer must be able to itemize deductions in order to take advantage of the deduction. About, 1/3 of taxpayers actually Itemize Deductions during the year.
In order to enter the above Mortgage Interest Statement correctly, follow the instructions below:
1. Click Add Form
2. Search Sch A
3. Select the Schedule A Itemized Deductions
3. Navigate to Line 10 on the Schedule A and Enter the amounts from Line 1 and/or 6 from the 1098 (Note, the box labeled "2nd" is NOT for line 2 on the 1098. Line 2 from the 1098 does not belong on the tax return)
4. Check the 1098 for any Real Estate taxes paid and enter them on Line 6 of the Schedule A
5. Also, check the 1098 for any Mortgage Insurance Premiums listed and enter them on line 13 of the Schedule A
The majority of the time tax preparers will only have to enter Mortgage Interest, Real Estate Taxes and Mortgage Insurance Premiums on a Schedule A, if any other items are listed on the 1098 Mortgage Interest Statement please refer to the IRS Instructions for Form 1098 Mortgage Interest Statement.