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Form 1098 (Mortgage Interest Statement) in TaxSlayer
Form 1098 (Mortgage Interest Statement) in TaxSlayer
Angelica Acebes avatar
Written by Angelica Acebes
Updated over 2 weeks ago

Form 1098, also known as the Mortgage Interest Statement, is issued by banks or mortgage lenders to document mortgage interest paid by borrowers. This interest can be deducted on Schedule A to help reduce the taxpayer’s adjusted gross income (AGI).

Steps to Add Mortgage Interest from Form 1098

1. Access Federal Information

  • From the left-side menu, select Federal Information to expand the dropdown of federal form categories.

2. Navigate to Deductions

  • Click on Deductions to open the Deductions List page.

3. Open Schedule A Form

  • Locate Schedule A and click Start.

4. Add Mortgage Interest Paid

  • Scroll down to the Interest Paid section.

  • Enter the mortgage interest details from Form 1098 received by the taxpayer.

5. Specify Additional Information

  • If the interest was paid to an individual instead of a financial institution, specify this additional information.

6. Additional Instructions

  • If the taxpayer paid less than $600 in mortgage interest and it was not reported on Form 1098, enter the amount on Line 8b of Schedule A.

  • If the interest was paid as points (prepaid interest), enter it on Line 8c.

7. Reporting Mortgage Interest for Business Purposes

If the mortgage interest is related to a business, farm, or rental property, report it under the appropriate tax form:

  • Schedule C – for a sole proprietorship

  • Schedule F – for farming

  • Schedule E – for rental properties

Let us know if you need further assistance!

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