Things You'll Need:
- Form 1098
- Schedule A
- Calculator
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Step 1
Wait to receive your 1098 form from the mortgage company before calculating your mortgage tax deduction. This form will have the information you need about interest paid on your mortgage and points paid.
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Step 2
Fill out the "Interest Paid" section of your Schedule A with the information on your 1098 form. This form will tell you how much mortgage interest you have paid and how many points you paid toward your mortgage as well.
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Step 3
Add information about any mortgage interest and points paid that were not reported on a 1098 form where instructed on the Schedule A.
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Step 4
Include mortgage insurance premiums when calculating the mortgage tax deduction on Schedule A. You may need to call your mortgage company or look at your end-of-year mortgage statement to find this dollar amount, as it is not usually included on your 1098 form.
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Step 5
Leave off mortgage interest paid on rental property. This will not be reported as mortgage tax deduction on you Schedule A. It is considered a business expense, not mortgage interest, and needs to be reported on a different form.
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Step 6
Make sure that you have enough itemized deductions on your Schedule A to exceed the standard deduction. If you do not have enough itemized deductions as a whole, do not take the mortgage tax deduction.
