Deductions & credits

You should deduct home mortgage interest and points reported on Form 1098 on Schedule A (Form 1040), line 8a.

If you are referring to interest incurred to produce rents or royalties you should report these on Schedule E. See the table below.

Royalties from copyrights, patents, and oil, gas, and mineral properties are taxable as ordinary income. You generally report royalties in Part I of Schedule E (Form 1040), Supplemental Income and Loss

Please follow the steps below to correctly report your royalty income:

1. Open your return.
2. Search 1099-MISC and select the Jump-to link.
3. Enter your royalties in Box 2.
4. Select Investment income from Property you own for the page titled Source of 1099-MISC Income.
5. Search for Schedule E and select the Jump-to link. 
6. Click Edit next to the Royalty entry.
7. Answer the remaining on-screen questions.

If your question is relating to your personal home and has nothing to do with royalty income and expenses then you should enter the interest shown on your Form 1098 on Schedule A. 

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