Publication 936 - Home Mortgage Interest Deduction

Internet. You can access the IRS web-

1. Figure your deductible points for the cur-

Amount on line 9

rent year using the rules explained under

site at IRS.gov 24 hours a day, 7 days

allocated to that activity

Points

in Part I.

a week to:

Total amount on line 9

•

2. Multiply the amount in item (1) by the deci-

Check the status of your 2011 refund. Go

mal amount on line 11. Enter the result on

to IRS.gov and click on Where’s My Re-

Example. Don had two mortgages (A and

Schedule A (Form 1040), line 10 or 12,

fund. Wait at least 72 hours after the IRS

B) on his main home during the entire year.

whichever applies. This amount is fully de-

acknowledges receipt of your e-filed re-

ductible.

Mortgage A had an average balance of $90,000,

turn, or 3 to 4 weeks after mailing a paper

and mortgage B had an average balance of

return. If you filed Form 8379 with your

3. Subtract the result in item (2) from the

$110,000.

return, wait 14 weeks (11 weeks if you

amount in item (1). This amount is not de-

Don determines that the proceeds of mort-

filed electronically). Have your 2011 tax

ductible as home mortgage interest. How-

gage A are allocable to personal expenses for

return available so you can provide your

ever, if you used any of the loan proceeds

the entire year. The proceeds of mortgage B are

for business or investment activities, see

social security number, your filing status,

allocable to his business for the entire year. Don

the instructions for line 13, later.

and the exact whole dollar amount of your

paid $14,000 of interest on mortgage A and

refund.

$16,000 of interest on mortgage B. He figures

Claiming your deductible mortgage insur-

•

E-file your return. Find out about commer-

the amount of home mortgage interest he can

ance premiums. If your adjusted gross in-

cial tax preparation and e-file services

deduct by using Table 1. Since both mortgages

come on Form 1040, line 38, is more than

available free to eligible taxpayers.

are home equity debt, Don determines that

$109,000 ($54,500 if married filing separately),

•

$15,000 of the interest can be deducted as

Download forms, including talking tax

you cannot deduct your mortgage insurance

home mortgage interest.

forms, instructions, and publications.

premiums. Otherwise, figure your deductible

mortgage insurance premiums for the current

The interest Don can allocate to his business

•

Order IRS products online.

year using the rules explained under

Mortgage

is the smaller of:

•

Research your tax questions online.

Insurance Premiums

in Part I. If the amount on

1. The amount on Table 1, line 13 of the

Form 1040, line 38, is $100,000 or less ($50,000

•

Search publications online by topic or

worksheet ($15,000), or

or less if married filing separately), enter the full

keyword.

amount of your qualified mortgage insurance

2. The total amount of interest allocable to

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Use the online Internal Revenue Code,

premiums on Schedule A (Form 1040), line 13. If

the business ($16,500), figured by multi-

the amount on Form 1040, line 38, is more than

regulations, or other official guidance.

plying the amount on line 10 (the $30,000

$100,000 ($50,000 if married filing separately),

•

total interest paid) by the following fraction.

View Internal Revenue Bulletins (IRBs)

your deduction is limited. Enter your qualified

published in the last few years.

mortgage insurance premiums on line 1 of the

$110,000 (the average balance

•

Mortgage Insurance Premiums Deduction

Figure your withholding allowances using

of the mortgage allocated

Worksheet in the instructions for Schedule A

to the business)

the withholding calculator online at

www.

(Form 1040) to figure the amount to enter on

irs.gov/individuals.

$200,000 (the total average

Schedule A (Form 1040), line 13.

•

balance of all mortgages)

Determine if Form 6251 must be filed by

using our Alternative Minimum Tax (AMT)

Because $15,000 is the smaller of items (1)

Line 13

Assistant available online at

and (2), that is the amount of interest Don can

individuals.

allocate to his business. He deducts this amount

You cannot deduct the amount of interest on line

•

on his Schedule C (Form 1040).

13 as home mortgage interest. If you did not use

news by email.

any of the proceeds of any mortgage included

•

on line 9 of the worksheet for business, invest-

Get information on starting and operating

ment, or other deductible activities, then all the

a small business.

How To Get Tax Help

interest on line 13 is personal interest. Personal

interest is not deductible.

If you did use all or part of any mortgage

You can get help with unresolved tax issues,

Phone. Many services are available by

proceeds for business, investment, or other de-

order free publications and forms, ask tax ques-

phone.

ductible activities, the part of the interest on line

tions, and get information from the IRS in sev-

13 that is allocable to those activities can be

eral ways. By selecting the method that is best

•

Ordering forms, instructions, and publica-

deducted as business, investment, or other de-

for you, you will have quick and easy access to

tions. Call 1-800-TAX-FORM

ductible expense, subject to any limits that ap-

tax help.

(1-800-829-3676) to order current-year

ply. Table 2 shows where to deduct that interest.

forms, instructions, and publications, and

See Allocation of Interest in chapter 4 of Publica-

prior-year forms and instructions. You

tion 535 for an explanation of how to determine

Free help with your return. Free help in pre-

the use of loan proceeds.

should receive your order within 10 days.

paring your return is available nationwide from

The following two rules describe how to allo-

IRS-certified volunteers. The Volunteer Income

•

Asking tax questions. Call the IRS with

cate the interest on line 13 to a business or

Tax Assistance (VITA) program is designed to

your tax questions at 1-800-829-1040.

investment activity.

help low-moderate income taxpayers and the

•

Solving problems. You can get

Tax Counseling for the Elderly (TCE) program is

•

If you used all of the proceeds of the mort-

face-to-face help solving tax problems

designed to assist taxpayers age 60 and older

gages on line 9 for one activity, then all

every business day in IRS Taxpayer As-

with their tax returns. Most VITA and TCE sites

the interest on line 13 is allocated to that

sistance Centers. An employee can ex-

offer free electronic filing and all volunteers will

activity. In this case, deduct the interest on

plain IRS letters, request adjustments to

let you know about credits and deductions you

the form or schedule to which it applies.

your account, or help you set up a pay-

may be entitled to claim. To find the nearest

•

If you used the proceeds of the mortgages

VITA or TCE site, visit IRS.gov or call

ment plan. Call your local Taxpayer Assis-

on line 9 for more than one activity, then

1-800-906-9887 or 1-800-829-1040.

tance Center for an appointment. To find

you can allocate the interest on line 13

the number, go to

localcon-

As part of the TCE program, AARP offers the

among the activities in any manner you

tacts

or look in the phone book under

Tax-Aide counseling program. To find the near-

select (up to the total amount of interest

United States Government, Internal Reve-

est AARP Tax-Aide site, call 1-888-227-7669 or

otherwise allocable to each activity, ex-

nue Service.

visit AARP’s website at

plained next).

taxaide.

•

TTY/TDD equipment. If you have access

For more information on these programs, go

to TTY/TDD equipment, call

You figure the total amount of interest other-

to IRS.gov and enter keyword “VITA” in the

1-800-829-4059 to ask tax questions or to

wise allocable to each activity by multiplying the

upper right-hand corner.

amount on line 10 by the following fraction.

order forms and publications.

Publication 936 (2011)

Page 13

Publication 936 - Home Mortgage Interest Deduction - 2011 Page 13

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