You do not need the 1098 to enter the interest in TurboTax. The interest is deductible if:
- The loan is secured, which means the lender has some kind of guarantee of payment, usually in the form of property. If a borrower defaults on payments, the lender can seize the property that’s securing the loan. If you’re buying or refinancing a home, especially if it’s your first home, the loan is usually secured by the home you’re buying or refinancing.
- The home with the secured loan must have sleeping, cooking, and toilet facilities.
- The debt can’t exceed $750,000 (or $1,000,000 if the loan was taken before December 16, 2017) to get the full deduction.
- You or someone on your tax return must have signed or co-signed the loan.
- If you rented out the home, you must have used the home more than 14 days during the tax year or 10% of the number of days you rented it out, whichever is greater.
Mortgage interest is usually reported (not required) on Form 1098, Mortgage Interest Statement. Enter it in TurboTax as if you do have a 1098. After you enter the amounts, we'll ask a series of follow-up questions to make sure you're qualified to take the deduction.
For tax years 2018 through 2025, you can only deduct the interest from the amount of your loan that was used to buy, build, or improve the home that it’s secured by. If you’ve ever used part of this loan to pay for things other than this home, you cannot deduct the interest from that amount of the loan, even if the transaction didn’t take place this year.
Examples of common ways you might have used this money (and therefore the interest would not be deductible) not on your home include:
- Making a down-payment on a different home
- Funding improvements on a different home
- Making a payment on a different loan or debt
- Having miscellaneous large purchases
From - Can I deduct mortgage interest?
See IRS Deducting Mortgage Interest
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