Instructions For Schedule A (Form 1040) - Itemized Deductions

A home mortgage is any loan that is se-

If you don't show the required

Home mortgage interest limited. If

cured by your main home or second

information about the recipient

your home mortgage interest deduction

home. It includes first and second mort-

or let the recipient know your

is limited, only enter on line 10 the de-

CAUTION

gages, home equity loans, and refi-

SSN, you may have to pay a $50 penalty.

ductible mortgage interest and points

nanced mortgages.

that were reported to you on Form 1098.

Interest reported on someone else’s

See

Limit on home mortgage

interest,

Form 1098. If you and at least one oth-

A home can be a house, condomini-

earlier, for more information about when

er person (other than your spouse if fil-

um, cooperative, mobile home, boat, or

your deduction is limited.

ing jointly) were liable for and paid in-

similar property. It must provide basic

Refund of overpaid interest. If your

terest on the mortgage, and the home

living accommodations including sleep-

Form 1098 shows any refund of over-

mortgage interest paid was reported on

ing space, toilet, and cooking facilities.

paid interest, don't reduce your deduc-

the other person’s Form 1098, identify

Limit on home mortgage interest. If

tion by the refund. Instead, see the in-

the name and address of the person or

you took out any mortgages after Octo-

structions for Form 1040, line 21.

persons who received a Form 1098 re-

ber 13, 1987, your deduction may be

porting the interest you paid. If you are

Interest reported on someone else’s

limited. Any additional amounts bor-

filing a paper return, identify the person

Form 1098. If you and at least one oth-

rowed after October 13, 1987, on a

by attaching a statement to your paper

er person (other than your spouse if fil-

line-of-credit mortgage you had on that

return and printing “See attached” to the

ing jointly) were liable for and paid in-

date are treated as a mortgage taken out

right of line 11.

terest on the mortgage, and the interest

after October 13, 1987. If you refi-

was reported on the other person's Form

nanced a mortgage you had on October

Line 12

1098, report your share of the interest on

13, 1987, treat the new mortgage as tak-

line 11 (as explained in

Line

11, later).

en out on or before October 13, 1987.

Points Not Reported on

However, if you refinanced for more

Form 1098 doesn’t show all interest

Form 1098

than the balance of the old mortgage,

paid. If you paid more interest to the re-

treat the excess as a mortgage taken out

cipient than is shown on Form 1098,

Points are shown on your settlement

after October 13, 1987.

show the larger deductible amount on

statement. Points you paid only to bor-

line 10 and explain the difference. If you

See Pub. 936 to figure your deduction

row money are generally deductible

are filing a paper return, explain the dif-

if either (1) or (2) next applies. If you

over the life of the loan. See Pub. 936 to

ference by attaching a statement to your

had more than one home at the same

figure the amount you can deduct.

paper return and printing “See attached”

time, the dollar amounts in (1) and (2)

Points paid for other purposes, such as

to the right of line 10.

apply to the total mortgages on both

for a lender's services, aren't deductible.

homes.

If you are claiming the mort-

Refinancing. Generally, you must de-

gage interest credit (for holders

1. You, or your spouse if filing

duct points you paid to refinance a mort-

of qualified mortgage credit

jointly, took out any mortgages after Oc-

gage over the life of the loan. This is

CAUTION

certificates issued by state or local gov-

tober 13, 1987, and used the proceeds

true even if the new mortgage is secured

ernmental units or agencies), subtract

for purposes other than to buy, build, or

by your main home.

the amount shown on Form 8396, line 3,

improve your home, and all of these

If you used part of the proceeds to

from the total deductible interest you

mortgages totaled over $100,000 at any

improve your main home, you may be

paid on your home mortgage. Enter the

time during 2017. The limit is $50,000 if

able to deduct the part of the points rela-

result on line 10.

married filing separately. An example of

ted to the improvement in the year paid.

this type of mortgage is a home equity

See Pub. 936 for details.

Line 11

loan used to pay off credit card bills,

If you paid off a mortgage ear-

buy a car, or pay tuition.

If you paid home mortgage interest to a

ly, deduct any remaining points

TIP

2. You, or your spouse if filing

recipient who didn’t provide you a Form

in the year you paid off the

jointly, took out any mortgages after Oc-

1098, report your deductible mortgage

mortgage. However, if you refinanced

tober 13, 1987, and used the proceeds to

interest on line 11.

your mortgage with the same lender, see

buy, build, or improve your home, and

Seller financed mortgage. If you paid

Mortgage ending early in Pub. 936 for

these mortgages plus any mortgages you

home mortgage interest to the person

an exception.

took out on or before October 13, 1987,

from whom you bought the home and

totaled over $1 million at any time dur-

that person did not provide you a Form

Line 13

ing 2017. The limit is $500,000 if mar-

1098, write that person's name, identify-

ried filing separately.

ing number, and address on the dotted

At the time these instructions

lines next to line 11. If the recipient of

If the total amount of all mort-

went to print, the deduction for

your home mortgage payment(s) is an

gages is more than the fair

mortgage insurance premiums

individual, the identifying number is his

CAUTION

market value of the home, addi-

CAUTION

formerly claimed on line 13 had expired.

or her social security number (SSN).

tional limits apply. See Pub. 936.

You can't claim a deduction on line 13

Otherwise, it is the employer identifica-

for amounts paid or accrued after 2016.

Line 10

tion number (EIN). You must also let

Line 13 is now shown as "Reserved for

the recipient know your SSN.

Enter on line 10 mortgage interest and

future use" in case Congress extends the

points reported to you on Form 1098.

deduction for 2017. To find out if legis-

A-8

Instructions For Schedule A (Form 1040) - Itemized Deductions - 2017 Page 8

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