Instructions For Schedule A (Form 1040) - 2009 Page 8

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2009. The limit is $500,000 if married fil-
If you and at least one other person
person (other than your spouse if filing
ing separately.
(other than your spouse if filing jointly)
jointly) were liable for and paid the premi-
ums in connection with the loan, and the
were liable for and paid interest on the
premiums were reported on Form 1098
mortgage, and the other person received the
If the total amount of all mort-
under the other person’s SSN, report your
Form 1098, attach a statement to your re-
gages is more than the fair mar-
turn showing the name and address of that
share of the premiums on line 13.
ket value of the home,
additional limits apply. See
person. To the right of line 11, enter “See
Qualified mortgage insurance is mort-
Pub. 936.
attached.”
gage insurance provided by the Department
Line 10
of Veterans Affairs, the Federal Housing
Administration, or the Rural Housing Serv-
Enter on line 10 mortgage interest and
Line 12
ice, and private mortgage insurance (as de-
points reported to you on Form 1098 under
fined in section 2 of the Homeowners
your social security number (SSN). If this
Points Not Reported on
Protection Act of 1998 as in effect on De-
form shows any refund of overpaid interest,
Form 1098
cember 20, 2006).
do not reduce your deduction by the refund.
Points are shown on your settlement state-
Instead, see the instructions for Form 1040,
Mortgage insurance provided by the De-
ment. Points you paid only to borrow
line 21. If you and at least one other person
partment of Veterans Affairs and the Rural
money are generally deductible over the
(other than your spouse if filing jointly)
Housing Service is commonly known as a
were liable for and paid interest on the
life of the loan. See Pub. 936 to figure the
funding fee and guarantee fee respectively.
mortgage, and the interest was reported on
amount you can deduct. Points paid for
These fees can be deducted fully in 2009 if
Form 1098 under the other person’s SSN,
other purposes, such as for a lender’s serv-
the mortgage insurance contract was issued
report your share of the interest on line 11
ices, are not deductible.
in 2009. Contact the mortgage insurance
(as explained in the line 11 instructions be-
issuer to determine the deductible amount
low).
Generally, you must deduct
Refinancing.
if it is not included in box 4 of Form 1098.
points you paid to refinance a mortgage
If you paid more interest to the recipient
over the life of the loan. This is true even if
If
Prepaid mortgage insurance premiums.
than is shown on Form 1098, see Pub. 936
the new mortgage is secured by your main
you paid qualified mortgage insurance pre-
to find out if you can deduct the additional
home.
miums that are allocable to periods after the
interest. If you can, attach a statement ex-
close of the tax year, you must allocate
plaining the difference and enter “See at-
If you used part of the proceeds to im-
them over the shorter of:
tached” to the right of line 10.
prove your main home, you may be able to
The stated term of the mortgage, or
If you are claiming the mort-
deduct the part of the points related to the
84 months, beginning with the month
gage interest credit (for holders
improvement in the year paid. See Pub. 936
the insurance was obtained.
of qualified mortgage credit
for details.
certificates issued by state or lo-
The premiums are treated as paid in the
cal governmental units or agencies), sub-
If you paid off a mortgage
year to which they are allocated. If the
tract the amount shown on Form 8396, line
early, deduct any remaining
TIP
mortgage is satisfied before its term, no
3, from the total deductible interest you
points in the year you paid off
deduction is allowed for the unamortized
paid on your home mortgage. Enter the re-
the mortgage.
balance. See Pub. 936 for details.
sult on line 10.
Exception for certain mortgage insur-
Line 11
ance. The allocation rules, explained
Line 13
If you did not receive a Form 1098 from the
above, do not apply to qualified mortgage
recipient, report your deductible mortgage
insurance provided by the Department of
Qualified Mortgage
interest on line 11.
Veterans Affairs or the Rural Housing
Insurance Premiums
Service.
If you bought your home from the recip-
ient, be sure to show that recipient’s name,
Enter the qualified mortgage insurance pre-
Limit on amount you can deduct.
You
identifying number, and address on the
miums you paid under a mortgage insur-
cannot deduct your mortgage insurance
dotted lines next to line 11. If the recipient
ance contract issued after December 31,
premiums if the amount on Form 1040, line
is an individual, the identifying number is
2006, in connection with home acquisition
38, is more than $109,000 ($54,500 if mar-
his or her social security number (SSN).
debt that was secured by your first or sec-
ried filing separately). If the amount on
ond home. See Prepaid mortgage insurance
Otherwise, it is the employer identification
Form 1040, line 38, is more than $100,000
premiums on this page if you paid any pre-
number. You must also let the recipient
($50,000 if married filing separately), your
miums allocable to any period after the
know your SSN. If you do not show the
deduction is limited and you must use the
close of the tax year. Box 4 of Form 1098
required information about the recipient or
worksheet on page A-8 to figure your de-
may show the amount of premiums you
let the recipient know your SSN, you may
duction.
paid in 2009. If you and at least one other
have to pay a $50 penalty.
A-7

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