Tax Year Prior to 2020: I paid my mortgage by getting a home equity loan from a different bank, do I have to report this to the IRS?

[relt14]

I reduced my interest with the new loan, cut a few years on the loan, and got around $6K which I used to pay some credit cards and a car loan. This new bank has not sent me any forms to report. I did this in August 2015 and I can't find any documents on the website either. thanks.

[KarenL2]

You don't report the extra cash you received, but you can deduct the interest.  If you don't have a Form 1098 then check your January statement for the loan as the interest paid is often listed on that.  Also, you can contact the bank.

The interest on up to $100,000 borrowed on a home equity loan or home equity line of credit, regardless of the reason for the loan, can be deducted in the Mortgage Interest section (Home Loan Deduction).

To get to that area in TurboTax:  While inside the software and working on your return, type home equity loan in the Search at the top of the screen (you may see a magnifying glass there).  There will be a popup that says Jump to home equity loan.  Select that to get to the general area. 

Alternatively, you can go to:

• Federal Taxes tab (Person in the Home & Business version)
• Deductions and Credits
• Your Home
• Mortgage Interest and Refinancing and Property Taxes